Not again

Finweek English Edition - - Creating Wealth -

I DON’T WANT to write about SA Air­ways, po­ten­tially the turn­around sit­u­a­tion of the cen­tury if we could in­vest in it, any­more. But I did no­tice the ster­ling re­sults from Co­mair/ Bri­tish Air­ways de­spite the dif­fi­cult eco­nomic en­vi­ron­ment and pres­sure on air travel.

If Co­mair can still make a profit in cur­rent cir­cum­stances why can’t SAA, with its Gov­ern­ment sub­sidy and near mo­nop­oly at air­ports and on air routes?

Not long af­ter I called SAA boss Khaya Ngqula – the lat­est drug lord – two weeks ago an­other SAA flight crew was busted try­ing to bring co­caine into Lon­don. Al­le­ga­tions are yet to be proved in court, but it’s em­bar­rass­ing when South Africa’s na­tional car­rier be­comes bet­ter known for drug run­ning than any­thing else.

But maybe there’s hope. Ngqula is on “spe­cial leave” while var­i­ous al­le­ga­tions made against him are in­ves­ti­gated by KPMG. I don’t think he’ll be com­ing back. And Fi­nance Min­is­ter Trevor Manuel’s com­ment about an­other R1,6bn bail-out for SAA in his Bud­get was pretty scathing.

Maybe it’s time to let SAA loose and al­low an­other air­line to buy it and turn it into a real air­line. Then list it on the JSE.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.