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 the country's taxpayer for decades. The mismanagement at the airline over the years, knows no bounds and like power utility Eskom, has 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 used to pay its creditors. Making a profit is a goal that SAA has set but hasn't been met since 2011. There has been numerous calls from politicians, the tax paying public as well as Chapter 9 institutions to privatise this state-owned albatross, but to no avail. Its former chairperson Dudu Myeni, appointed in 2012, is also embroiled in state capture allegations and has appeared at the Zondo Commission of Inquiry to explain her role and her relationship with former president Jacob Zuma who is also accused of being involved in state capture. The airline has been placed in business rescue while the government has yet again bailed them out to the tune of R10 billion to pay their creditors, not even near enough to cover its operational costs.
Currently, SAA pilots are now targeted by the business rescue team in a bid to cut costs at the airline. According to a government press release, the Department of Public Enterprises supports the decision by South African Airways Business Rescue Practitioners to lock out members of the South African Airways Pilots Association (SAAPA) after protracted negotiations failed to yield agreements on new conditions of employment for a future restructured airline, which the department believes, need to reduce the high cost structure caused by onerous contracts and high perks and salaries under pilot union SAAPA's regulatory agreement.
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Nigeria:
Fadugba's Appointment and Move to Reposition SAA
This Day, 18 December 2020
The Nigerian international aviation consultant and CEO of African Aviation Services, Nick Fadugba has been appointed to the interim board that would reposition South Africa Airways… Read more »
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South Africa:
Public Enterprises Supports BR Practitioners Lock Out of SAA Pilots Over New Employment Conditions
Govt of SA, 17 December 2020
The Department of Public Enterprises supports the decision by South African Airways (SAA) Business Rescue Practitioners to lockout members of the union, the South African Airways… Read more »
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South Africa:
DPE Supports Business Rescue's Lockout of SAA Pilots
SAnews.gov.za, 17 December 2020
The Department of Public Enterprises (DPE) says it supports the decision by South African Airways (SAA) business rescue practitioners (BRP) to lockout members of the union… Read more »
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South Africa:
The Gloves Come Off in Dispute Between SAA and Pilots
Daily Maverick, 16 December 2020
Negotiations between SAA's joint business rescue practitioners (BRPs) and the SAA Pilots' Association have reached an implacable deadlock. On Wednesday, the BRPs issued a 48-hour… Read more »
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South Africa:
Govt Runs Roughshod Over Labour Legislation. Why Is This Okay?
Daily Maverick, 8 December 2020
Eighteen months ago, SAA pilots were flying high. They were tightly organised, highly skilled and in-demand globally. They were also well remunerated. Today, the situation has… Read more »
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South Africa:
DPE Urges Patience While Seeking SAA Solutions
SAnews.gov.za, 4 December 2020
The Department of Public Enterprises (DPE) has reiterated its commitment to finding solutions to the financial challenges that have seen South African Airways (SAA) staff salaries… Read more »
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South Africa:
Fiscal Reality Check - SAA Bailout, Public Servants' Wage Freeze and Service Delivery Under the Spotlight
Daily Maverick, 3 November 2020
If Parliament's finance and appropriation committees act on their concerns that SAA's billions and debt repayments are pushing service delivery into crisis, it would be a first.… Read more »
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South Africa:
Ministers Defend Bailout for Embattled National Airline
Daily Maverick, 29 October 2020
Despite protestations by the Finance Minister that the R10.5-billion allocation to SAA is not a 'bailout', it has the hallmarks of undeserved financial assistance. The cash for SAA… Read more »
InFocus
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Finance Minister Tito Mboweni and Public Enterprises Minister Pravin Gordhan have defended the controversial decision to secure South African Airways (SAA) a U.S.$643,838,000 ... Read more »
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Official opposition party the Democratic Alliance has called for the dismissal of South African Airways chair Dudu Myeni over the "planned raid on pensioners' money" to salvage the ... Read more »
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South African national carrier, South African Airways, seems well on its way to receiving yet another R5 billion bailout from the government, much to the disapproval of the ... Read more »
(file photo).