Unstable and improper management of the National carrier South African Airways (SAA) for years has caused bailouts to the airline from the government.
SAA’s target of profit making hasn’t been achieved since 2011. All the efforts by politicians and tax-payers to denationalize the airline have been fruitless.
Business rescue body hasn’t been able to cope with the air carrier’s operational costs and this is while the government’s bailout (the tune of R10 billion) has not yet been settled.
Business rescue is presently addressing the airline’s pilots to reduce expenses at SAA. The Department of Public Enterprises became in favor of South African Airways Business Rescue Practitioners’ plan to dismiss members of SAAPA (South African Airways Pilots Association) when discussions couldn’t reach an agreement to new employment opportunity for a reorganized airline in the future. According to the department, the airline has to change its structure, lower large costs of heavy contracts and cut huge salaries and bonuses.