Why the government's attempt to compare Telkom to SAA is flawed

[Jamie McKane]

Why the government's attempt to compare Telkom to SAA is flawed

The government recently announced that it wants to replicate Telkom’s public-private partnership to save the insolvent South African Airways (SAA).

The Department of Public Enterprises (DPE) said it has started negotiations with private entities interested in buying into South Africa’s national carrier.

 

[The_Hobbit]

I'm going to be honest.
I will actively avoid SAA.
I don't believe this government is capable of turning them around and I believe it's a waste of resources. The sooner it dies the better.

 

[Johand]

I am just worried that somebody from government reads this and reach the conclusion that they need to make SAA a monopoly.

 

[rodmur]

Telkom is still a disaster when it comes to customer service and broadband coverage.

 

[ToxicBunny]

I am just worried that somebody from government reads this and reach the conclusion that they need to make SAA a monopoly.

Ultimately that isn't possible, thanks to the interconnectedness of air routes.

If they tried the monopoly thing, they'd more than likely lose landing rights at places like Heathrow etc...
You can't run an airline hub without having connections to the main transit points around the world.

 

[Johand]

Telkom is still a disaster when it comes to customer service and broadband coverage.

But it isn't the governments fiscal problem anymore Frankly if the "new" SAA has terrible customer service, very few flights but is not funded by the tax payer then it is an absolute win At this stage even if the government sells 100% of it for R1 in a corrupt transaction then the taxpayers will still come out ahead.

 

[TheChamp]

Telkom is still a disaster when it comes to customer service and broadband coverage.

It's a model of business they are talking about, and it's still a far much better disaster than any of the SOEs. Their management is useless but they are still a company that is able to make money for government.

 

[grok]

If government is still going to be involved will Cele allow alcohol to be served on flights?

 

[The_Hobbit]

If government is still going to be involved will Cele allow alcohol to be served on flights?

There will be a loophole about the government's jurisdiction x meters from the ground.

 

[The_Hobbit]

Ultimately that isn't possible, thanks to the interconnectedness of air routes.

If they tried the monopoly thing, they'd more than likely lose landing rights at places like Heathrow etc...
You can't run an airline hub without having connections to the main transit points around the world.

You can monopolise local routes tho.

 

[ToxicBunny]

You can monopolise local routes tho.

Yeah they could, but somehow I don't think they'd even get that right given how inept this lot are.

 

[j4ck455]

He added that, just like Telkom, the new SAA may eventually be listed.

New SAA listed where, on used toilet paper?

 

[Yskasmetnstoof]

So are they going to give SAA to a "klomp boere" to build up into a functioning outfit first then?