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South African Airways CEO Resigns: Lack Of Funding, No Government Support

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South African Airways (SAA) has announced that its CEO, Vuyani Jarana, has stepped down due to lack of funding and a drop in government support for the turnaround plan of the ill-fated carrier. Jarana's tenure lasted only 18 months, offering strong promises to bring the carrier round to its first profits since 2011. He, like the SAA chairman Johannes Bheukmuzi Magwaza, has lambasted the government for the continued failures faced by the airline. In a letter seen by Bloomberg, he said that… (airwaysmag.com) 기타...

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nasdisco
Chris B 2
The days of the National(ized) Airline are over.
sgbelverta
sharon bias 3
Government support of airlines rarely works. In the competitive commercial airline market, even private companies fail. Jet Airlines was the most recent failure. Anyone flying South African Airways should make sure they have travel interruption insurance.
mwf117
It is a sad state of affairs indeed for a once-proud organisation that used to be the pride of the nation. Unfortunately, its also a state shared by many of the SA government's mismanaged state-owned enterprises, which are all in a dire financial and operational state. At the core of S.A.A.'s problems is its geo-location where the routes it are able to compete in are not very profitable. In addition it is facing stiff competition from the major carriers the likes of British Airways and Emirates which all but dominate the lucrative Southern Africa to Dubai and Europe routes respectively. So not a situation which is going to be easy to turn around.
PJSalazar
Christoff: be patriotic and be hopeful!
PJSalazar
Really? What about all Chinese airlines that are in fact State owned?
rapidwolve
rapidwolve 1
Not all Chinese airlines are state owned. China Southern, China Eastern and Air China are state owned however Hainan Airlines, Cathay Pacific, Spring Airlines and others are not. And Taiwan won't let China Airlines or Mandarin Airlines be bought.
PJSalazar
By Chinese I meant "PRC".
rapidwolve
rapidwolve 1
Hainan Airlines, Spring Airlines and others are in PRC.
PJSalazar
and you really believe they are not one way or another run by the State or the Communist Party ? Really?
rapidwolve
rapidwolve 1
The state is the "Party" and the "Party" wants no part of anyone outside China, in their controlled interest.
PJSalazar
No support? LOL. I suppose it is a feeble joke as the South African tax payers have been bailing out the national carrier again and again (which may oy may not be fine, depending upon one's political views). However staff at SAA are doing a fine job and deserve support. Let us remember how the French taxpayer has been supporting Air France (even bailing it out to the tune of what was then the deficit of Social Welfare), etc. It is not a particularly South African issue. As for the routes a strategic error was to believe that intra-African routes, especially West, would be lucrative. Another error (unless it was some sort of stitch-up) was to go into alliance with Lufthansa, and relinquish the Paris slots. But who can mention a national carrier that has not been subject to government desiderata, or made abysmal errors?

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