Imagine, for a moment, an honest appraisal of SAA’s ‘rescue’
The SA Airways business rescue practitioners should put out the following (more honest) statement on ending the business rescue process:
“We, the business rescue practitioners of SAA, are delighted to report that we have substantially completed the business rescue process of SAA and are in the position where we now have an airline that has effectively no aircraft, essentially no pilots, no money and no ‘business partner’ and, as a result, is not flying any passengers.
“This is a substantial improvement on events preceding our involvement as the airline is now in a position (as it is not operational) where it is unlikely to incur the same level of losses seen in the past.
“We are also proud of the fact that with the (unwilling) assistance of the Treasury we have largely pacified the unions, our shareholder’s supporters, by paying out unnecessary retrenchment packets.
“We would be remiss in not extending our thanks to the taxpayers of SA, who have ensured that we have been very generously remunerated for our very significant achievements.
“Finally, we wish Mr Gordhan well with his other state-owned enterprise interventions and are convinced that they will end as successfully as this one.”
Nick Steen, on BusinessLIVE
Only in this circus can a “business” that has been insolvent for many years, has done virtually no incomegenerating business for a year but still had fixed costs to pay, suddenly become solvent.
I am sure management are going to give themselves a performance bonus for their miraculous turnaround skills. Thinus Marais, on BusinessLIVE
What’s up with inflation?
I am no economist, but this inflation thing is strange. Since last year the price of food and cleaning items has rocketed. Every week several items are more expensive.
How can it then be that inflation goes down? Is the average basket so weighted that food does not influence inflation?
Andrea Robertson, on BusinessLIVE
Lockdowns don’t work
The first lockdown didn’t stop the first wave, the second lockdown had no effect on the second wave, which rose and fell regardless, and a third/fourth/nth lockdown will not flatten any subsequent curve.
Alexandr Steinberg, on BusinessLIVE
It is now crystal clear the world over that lockdowns achieve very little, if nothing at all.