SAA and SA Express could be in for restructuring, says budget

State-owned enterprises (SOEs) that are bleeding money could see some restructuring ahead, according to the 2013 budget tabled by finance minister, Pravin Gordhan, yesterday. These include the cash-strapped SA Airways (SAA), sister airline SA Xpress, SA Broadcasting Corporation (SABC), Denel and the SA Post Office. “During 2011/12, (the) Airports Company (of SA) and Eskom recorded profits, but SAA, Alexkor and Armscor lost money.” The losses have been attributed to policy uncertainty, costs associated with non-commercial activities, operational inefficiencies and management instability.