Following the resignation of its CEO, South Africa Airways (SAA) seemed almost irrecoverable, said the Organisation Undoing Tax Abuse (Outa) yesterday.
In his resignation letter to the board, SAA CEO Vuyani Jarana stated that his departure was due to the lack of funding and government support the airline was receiving for its turnaround plan.
Government has injected an estimated R50 billion into the airline thus far in an attempt to keep it afloat.
According to Outa, the state cannot continue to bail out state-owned enterprises.
“Just as we did with Telkom, the time has arrived to allow an external partner with experience in efficient airline management to take a stake in the airline if it is going to survive,” said Outa executive director Heinrich Volmink.
A successful turnaround of SAA would require all hands on deck, Volmink added.
“This includes bringing labour unions on board, as the solutions will require a balance between job protection and cost reduction.”
