South Africa desperate to save its floundering National Carrier

National carrier South African Airways (SAA) has been the albatross around the necks of the South African government and therefore the country’s taxpayer for many years. The mistakes at the airline over so many years know no bounds and like power utility Eskom. They have seen several CEO and chairperson changes after the rot in its financial affairs were exposed. The airline has received several bailouts from the government since 1994, to the tune of U.S.3,4 billion, largely wanting to pay its creditors. Making a profit may be a goal that SAA has set but hasn’t been met since 2011. There were so many calls from politicians, the taxpaying public also like Chapter 9 institutions. It was done to privatise this state-owned albatross but to no avail. Its former chairperson Dudu Myeni, appointed in 2012, is additionally embroiled in state capture allegations and has appeared at the Zondo Commission of Inquiry to elucidate her role and her relationship with former president Jacob Zuma who is additionally accused of being involved in state capture. The airline has been placed in business rescue while the govt has once more bailed them bent the tune of R10 billion to pay their creditors, not even near enough to hide its operational costs.

Currently, SAA pilots are now targeted by the business rescue team during a bid to chop costs at the airline. consistent with a government handout, the Department of Public Enterprises supports the choice by South African Airways Business Rescue Practitioners to exclude members of the South African Airways Pilots Association (SAAPA) after protracted negotiations did not yield agreements on new conditions of employment. It was done for a future restructured airline, which the department believes, got to reduce the high-cost structure. It was caused by onerous contracts and high perks and salaries under pilot union SAAPA’s regulatory agreement.

Data source: All Africa news