State aviation companies have an acting malaise

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Organisation representing at least 30 airlines flying to and from SA says the musical chairs plaguing SOEs is causing ruinous turbulence. By JustinBrownSA

Organisation representing at least 30 airlines flying to and fromSAsays the musical chairs plaguing SOEs is causing ruinous turbulence.

“Although there are people in place, we all understand it is temporary. We would like to see those positions made permanent as quickly as possible. It doesn’t allow for continuity. You will be discussing a major issue with one party and then you suddenly find yourself having to talk to someone else about it.”

On the recent departure of Vuyani Jarana, Crawford said the former SAA CEO’s resignation “was an absolute shock. We didn’t see that one coming. I don’t think anyone was expecting it, to be honest. Even people within the organisation were surprised.” John Ashbourne, an economist at Capital Economics, wrote in a recent note that SAA’s domestic and regional services were profitable and could probably find a buyer if they were separated from the firm’s loss-making long-haul business.

“If you are a tour operator, you are probably going to think twice about including South Africa in your programme if you don’t think there is stability. Stability in this industry will definitely bring in more tourists, so it is also about global perceptions. Right now, we have an economy that is not looking brilliant. So all of it gets tied together.”“If SAA is unable to pay its bills, that would affect Acsa and Air Traffic & Navigation Services, both SOEs.

 

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