Not the time to shut SAA

The government’s continued stance of continuing to fund failed state-owned enterprises (SOEs) causes huge repercussions for SAs finances. ’

This issue goes back to the reason SOEs are established in the first place.

If there are entities in the private sector that can perform these functions profitably, why does the state not employ its capital for other urgent government needs?

I agree with John Spira (“Absurdly high hopes of saving SAA”, May 3), but it is critical to note that closing an established entity such as SAA has many repercussions for stakeholders, including creditors, employees and the government.

In the current environment, all airlines are under pressure to reconsider their business models, because as things stand they will not survive this turmoil.

It is not an opportune time for SAA to bar its doors, for several reasons. To begin with, barriers to entry are high in this industry, so the state may well be the most suitable operator. We must also avoid monopolies or the concentration of one airline’s share of the market.

However, if the airline is going to continue as a going concern it cannot be business as usual. Capable individuals need to be considered to head the company, from the board to executive management.

Let the department support the business rescue practitioners in its re-engineering activities. Nyaniso Qwesha

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