South African Airways has been losing money for years, and their losses keep getting bigger. The airline has an inefficient fleet, an inefficient route network, and there are also reports of a lot of corruption. The airline has missed several payments to creditors, and South Africa’s deputy finance spokesperson last year said that “essentially they…
Continue reading: South African Airways CEO Bets His Own Money That Airline Will Turn Profit Within Three Years
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I would love to see them be profitable , but there are no plans to get rid of the A340s and they keep on operating the routes that arent profitable. Latest report is that they need about R5 billion, and that comes from the tax payers. If airlines in SA like Comair and Safair can be profitable, why cant SAA?
Hi Ben, this probably would never happen but what are your thoughts on Ethiopian Airlines possibly acquiring SAA?
@Flyerguy10
Highly highly unlikely that ET will acquire SAA- it’s not for sale for a start and its state owned. National prestige will ensure it’s not sold to ET
The ZAR 100,000 is nothing more than symbolic. Forget exchange rates (exchange rates are irrelevant when thinking about what a local can purchase in a local currency). ZAR 100,000 is still nothing considering what even mid-level S. African executives earn in a year.
lol that's less than $ 8,000 USD...
He was earning over 10,700,000 ZAR (close to $900,000 USD) - a year as an executive at Vodacom so I'm guessing he's earning close to the same, if not more, running SAA
Agree with Paul. State owned airlines are prestige , could not be owned by a foreign airline or investor 100%. But maybe a minority shareholding will work for South African government . However , what investor who knows the airline business will invest in S A Airlines with its record and inefficient management ? Guaranteed to loose money .