Tough to spin off government subsidized entities (aka SOE's) when private property rights are being disabused, entering a recession, facing a major non-natural disaster (water), and plummeting corporate/personal income taxes.
At the end of the day, airlines are a very capital intensive business model, and I struggle to see how SAA can prosper/succeed over the next decade or two going from one government bond-driven bridge loan to the next. This seems doomed to...end poorly.
There is a word for that:. Corruption.
The business climate isn't conducive to investment. If they do start seizing assets, no one will invest. Part of the issue is land. Bank loans are made with land as collateral. If the collateral ownership is in question, it isn't collateral.
Part of the problem is South African business, including SAA, isn't allowed to be run as a business (e.g., correct staffing, equipment, and pay).
When people are afraid, rational or not, the economy suffers and with it air travel.
I personally believe it is already too late to save SAA. But the obvious won't be acknowledged until the government bond rating drops another 2 notches.
It is easy to spend other people's money until they get it to safety.
I wish people would read Adam Smith's Wealth of Nations. It is so true.
10 months without TV. The best decision of my life.