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Have plans for a new airline to replace bankrupt South African Airways (SAA) crashed before takeoff? Some experts believe so, summarizing the idea as an “impossible dream” to appease the unions and kick the can in the debacle.
Recent reports say the government is mulling over the idea of starting a new airline to replace the national airline, which is bankrupt and has relied on state bailouts for years.
But Guy Leitch, editor of SA Flyer magazine, said the lack of detailed plans made it impossible to assess its feasibility, but a new airline out of the ashes of SAA seemed impractical.
He said the plans were not only meaningless, but the time for launch was devastating as large international airlines are struggling due to the Covid-19 crisis.
“There are big problems when starting an airline. Obtaining an aircraft operation certificate can take up to 18 months, “said Leitch.
He said a committee would still have to evaluate the request before submitting it to aviation authorities for consideration.
Leitch said there was also the SAA brand problem and goodwill, which could be a big problem for potential investors.
He said the viable option was “to split the entity in two, hold the bad guys accountable to parliament and form a new airline based on pure business principles.”
The airline, which has cost the Treasury more than R20 billion in bailouts in the past three years, could begin ditching its more than 4,000 employees starting next week.
This if unions and workers do not accept a proposed compensation agreement, administrators trying to rescue the airline said Sunday.
Employees were reportedly officially informed on Sunday that they had been offered an apparently final opportunity to sign a proposal to terminate the employment agreement.
SAA, which last made a profit in 2011, filed for bankruptcy in December in a final effort to save or liquidate the national operator.
Phuthego Mojapele, an independent aviation expert, said that SAA had been dead for years and that what was left now was a corpse.
“He died a long time ago … and I don’t see any new airlines born out of this shell,” he said.
Mojapele said the proposed airline was playing with people’s emotions, giving workers hope that there was none, and also a cheap outlet for the government.
“What needs to happen is to seek to empower low-cost airlines like Kulula and Mango, reduce, reduce international routes and focus on regional and local flights.
“From there you can assess the situation in the future,” he said.
Mojapele said the unions were also to blame for the state of affairs at SAA, saying they were silent when unskilled people were appointed to key positions and only made noise when they wanted salary increases.
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