Here's why a merger for SAA, Mango and SA Express would be a disaster

Government is due to consider a "cost-saving" proposal to merge South African Airways (SAA), Mango and SA Express.

In May, Public Enterprises Minister Pravin Gordhan confirmed the merger was on the cards, but that the broader strategy still had to be worked out.

But despite its cost-saving aspirations, SA Flyer Magazine says it would be a disaster.

SA Express is absolutely on its knees and has very little chance of succeeding even in the short or medium term.

Guy Leitch, Managing editor - SA Flyer Magazine

Things are no better over at SAA, says Leitch.

SAA has got an absolute train smash on its hands without a CEO, without an executive chairman and still trying to implement a long-term turnaround strategy.

Guy Leitch, Managing editor - SA Flyer Magazine

The last thing it (SAA) needs is an additional burden of trying to integrate two other completely different airlines into its model.

Guy Leitch, Managing editor - SA Flyer Magazine

While Leitch admits that there are some cost-savings to be made - mainly by eradicating the need for three sets of management - the process of the merger itself would be extremely costly.

Listen to the full interview below:


This article first appeared on CapeTalk : Here's why a merger for SAA, Mango and SA Express would be a disaster


Recommended

by NEWSROOM AI
Read More
'SAA might be meeting with unions again in next 24 hours'

'SAA might be meeting with unions again in next 24 hours'

EWN's Babalo Ndenze reports on SAA management's appearance before Parliament’s Standing Committee on Public Accounts.

Aunt of slain student Jesse Hess confirms murder suspect is close family member

Aunt of slain student Jesse Hess confirms murder suspect is close family member

Sandy Hess says police made a breakthrough in the double murder case after linking suspect to rape of 16-year-old on Monday.

England legend Jeremy Guscott blasted for calls to change rugby substitution law

England legend Jeremy Guscott blasted for calls to change rugby substitution law

Stormers coach John Dobson has slammed Jeremy Guscott's proposal as a preposterous idea which could never work for the sport.

Why almost all SAA's international routes are making losses

Why almost all SAA's international routes are making losses

Aviation expert Guy Leitch argues that the carrier needs leadership with experience in airline turn-around strategies.

'If SA Express goes down, South Africans start saving money'

'If SA Express goes down, South Africans start saving money'

SA Express is in trouble. If it goes bust, taxpayers will save billions. Bruce Whitfield talks to Guy Leitch (SA Flyer Magazine).

Mango responds to passenger irked after losing Rolex watch on flight

Mango responds to passenger irked after losing Rolex watch on flight

The airline says it takes limited responsibility for any valuables left in bags.

Popular articles
Unions and SAA get ready for fight that threatens to break the ailing airline

Unions and SAA get ready for fight that threatens to break the ailing airline

Joanne Joseph plays audio from the media briefing over the impending strike.

White pupils at posh Kingswood College refer to black scholars as 'snoobab'

White pupils at posh Kingswood College refer to black scholars as 'snoobab'

"This problem is bigger than just a Kingswood problem. The relevant processes will unfold," says College Head Colleen Vassiliou.

Investors need to understand redress and sensitivities, says Eusebius

Investors need to understand redress and sensitivities, says Eusebius

Eusebius engages callers on the Richard Branson tweet that has been widely criticised for lacking diversity.

[WATCH] Pre-school class erupts as boy returns from RWC, goes viral

[WATCH] Pre-school class erupts as boy returns from RWC, goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

We’ll shut you down! – unions to SAA ('overstaffed by any measure globally’)

We’ll shut you down! – unions to SAA ('overstaffed by any measure globally’)

The money-pit airline is fighting for its life. Bruce Whitfield interviews Theto Mahlakoana, a senior political reporter at EWN.

'South Africans have to show greater respect for our farmers'

'South Africans have to show greater respect for our farmers'

“I spent a year travelling 100 000 km [crisscrossing SA researching farmers]. It changed my perspective,” says author Ivor Price.

[WATCH] Gay teen fights back against school bully as teachers do nothing

[WATCH] Gay teen fights back against school bully as teachers do nothing

Khabazela shares tweets and Facebook posts that have gone viral.

Farmer heartbroken as he watches animals die, says drought relief would help

Farmer heartbroken as he watches animals die, says drought relief would help

A Limpopo farmer and a Wits academic discuss the water crisis in South Africa that is affecting the agricultural industry.

[VIDEO] Family saved from being hit by speeding SUV goes viral

[VIDEO] Family saved from being hit by speeding SUV goes viral

Khabazela shares tweets and Facebook posts that have gone viral.