Who are we talking about? South Africa Airways (SAA), of course!
SAA has begged for – and will receive – an additional R6.488bn in state guarantees (read tax payers’ money) taking funding pledges to R14.4bn.
We are not making this up. This has been confirmed by the National Treasury. The only thing the SAA needs to do to get this easy bailout is provide the government details of a 90-day action plan intended to restore SAA’s solvency. This we call “sommer lekker easy money”. Anybody who runs a business into the ground will be fired or go hungry. Not the idiots at SAA. Neither will they take the blame – we all know it is either the fault of Jan van Riebeeck or Apartheid – or FW, PW, Jannie Jammergat or Eugene se Kock.
Let’s be honest. SAA is bankrupt – only surviving off state-guaranteed loans. It’s fleet is old and unprofitable. When they fly they lose money – our money. They should not be allowed to continue to operate as going concern – that alone is a great concern.
SAPA reports the government will pay the money SAA needs to continue to operate if:
- Within a month SAA provides Treasury with a comprehensive implementation plan for its “90-day Action Plan” interventions. This included timelines for targeted savings and which managers were responsible for delivering those savings;
- Government and SAA review and stress test the financial model and refine long-term turnaround strategy;
- SAA develop proposals within three months on the network structure, fleet strategy and structure of the airline, for government’s consideration;
- Within three months, the airline identify areas where it can cut operating costs, and how those cuts would be achieved;
- SAA strengthen governance, internal controls and working capital management, and develop implementation plans. Progress reports would have to be submitted monthly; and
- SAA submit weekly reports to the Treasury.
We say, ground the incompetent sods. Send the gravy train employees home. Sell the planes to competent airlines. Cut your losses. There are more than enough airlines that can get us into, out of and around southern Africa. Or keep giving them money but give South African taxpayers free flights after all they are paying for it already.
