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Be Smart About South Africa

South African Airways has Reached the End of the Line for Receiving State Funds

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Government told the airline’s rescue team that it was unable to provide funding to keep the carrier afloat any further. While the airline has not yet folded, the rescue team continues to evaluate options and impacts on the carrier. For nearly 10 years, SAA has not turned a profit and has relied on bailouts from the government. These have amounted to just shy of US$1.1bn in the last three years alone. The outlook is bleak for the carrier given this latest development. Amid the global downturn in aviation, nearly every carrier is seeking to find funds to keep them afloat. It is unclear if anyone will come to SAA’s rescue. The ailing flag carrier has made strides to try and improve its operations. This has included upgrading some A340 services to a more fuel-efficient and newer A350. And, the airline did set out a plan to offload the A340s from its fleet. However, those efforts appear to be too little too late.

SOURCE: SIMPLE FLYING

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