Madam House Chair, many politicians fear that their nations will be irrelevant if they abandon their money-losing, flag-flying airlines. In most places, the market would fill the gap, provided the government got out of the way. But national pride is powerful, costly and often stupid. What is SA Airways, SAA's stated vision?
I quote:
To deliver a commercially sustainable world-class air passenger and aviation service in South Africa, the African continent and to our tourism and trading partners.
Well, that's fail then. It is a commercial disaster bar none, and a massive drain on the fiscus. SA Airways only continues to fly with massive government assistance to the tune of some R57 billion cumulatively since 1994. Think about that.
The airline has tried to restructure ten times in the past two decades.
According to Sean Gossel, who teaches at the Graduate School of Business at the University of Cape Town, down the road:
Over 50 African countries continue to dabble in the airline industry despite the continent's poor track record, mainly because a national carrier is believed to be a source of patriotic pride and
economic status, both of which are very seldom borne out in reality.
South Africa, along with Zimbabwe [Interjections.]