By www.sowentanlive.com
A South African has suggested that South African Airways (SAA), which is mired in financial problems, should be offered to American billionaire Richard Branson instead of the government giving it another bailout.
Writing on readers comment box, the patriotic national says SAA’s business is finished, suppliers, staff and service providers that have not been paid are about to get burnt.
Richard Branson
“It’s no different to so many businesses going belly up in this sagging economy.
“Instead of another bailout, the government should offer five cents from every rand and clear the books.
“Richard Branson must be offered the ailing infrastructure for R1 and free of any encumbrances. He will rebrand the new airline as ‘Virgin SA’ and apply the rules and disciplines that have allowed Virgin airline to survive in a highly competitive industry.
Branson’s airline
“Sounds simple? It actually is. There are no other workable solutions,” said the writer.
Last month, www.timesLIVE.co.za quoted South Africa’s finance minister, Tito Mboweni suggesting that it would be better to close down SAA and start a new airline.
Mboweni had said: “It is unlikely that this would be sorted out, so my view is to close SAA down.
“Close it down and start a new airline. All together, invite [CEO of Standard Bank] Sim Tshabalala and others to come together and form a new airline,” he suggested.
Mboweni said the reason he thought closing down SAA would be better than continuing efforts to turn it around, is that it was unlikely the airline would find a private-sector partner.
This is not the first time Mboweni has suggested that the national carrier be shut down.
In his medium term budget policy speech in October, Mboweni said SAA was unlikely to generate sufficient cash flow to sustain operations in its current configuration.
He said an equity partner was needed to save the airline from “financial ruin”.
“It is unlikely ever to generate sufficient cash flow to sustain operations in its current configuration, which then begs the question: how long are we going to be on this flight path? Forever?
“I think not. Operational and governance interventions are required urgently.”
The national carrier’s employees are protesting against possible job cuts and are demanding an 8% salary increase, while SAA says it is only able to offer 5.9%, and only from March 2020.