Should SAA be laid to rest or sold?
SAA: Ready for shedding off? REPORTS IN THE South African press have it that a local private airline will sue the government over the continued bailout of South Africa Airways. The Airline, Comair, argues that the bail outs do not comply with; either the domestic aviation transport policy or the law, says the Business Report. Comair wants a level playing field in the domestic aviation market to ensure that all airlines face the same risks and the same requirements to operate on sound commercial principles. In the past 20 years, SAA has sunk 22 billion Rand, (US$2.5 billion) with nothing to show for it. And the government last October guaranteed US$576 million in loans over the next two years. The support was granted the airline to recapitalize after being pushed into insolvency by bad financial decisions. SAA can emulate KQ In 2004, the airline almost closed down after losing US$1.03 billion in hedge loss after a fuel edge went haywire. The airline had hed