National airline tests Ramaphosa’s ability to reform state companies
South African Airways flew the flag for a proud young democracy after the country’s emergence from the apartheid era. But by 2015 it was heavily indebted and plotting a move that reflected its chronic mismanagement — opening a money-burning route to Khartoum as a favour by then-president Jacob Zuma to his Sudanese counterpart. One civil servant scribbled across a report to the finance minister: “I cannot understand why this entity can contemplate another lossmaking route!” The plan was ultimately defeated by the Treasury. Yet many other financially destructive ideas were put into practice. The fate of SAA, which has not turned a profit for 6 years and required about US$2b of govt bailouts over the past half-decade, has become a big test for Zuma’s successor, Cyril Ramaphosa. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-11-28/star/national-airline-tests-ramaphosa2019s-ability-to-reform-state-companies
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National airline tests Ramaphosa’s ability to reform state companies
South African Airways flew the flag for a proud young democracy after the country’s emergence from the apartheid era. But by 2015 it was heavily indebted and plotting a move that reflected its chronic mismanagement — opening a money-burning route to Khartoum as a favour by then-president Jacob Zuma to his Sudanese counterpart. One civil servant scribbled across a report to the finance minister: “I cannot understand why this entity can contemplate another lossmaking route!” The plan was ultimately defeated by the Treasury. Yet many other financially destructive ideas were put into practice. The fate of SAA, which has not turned a profit for 6 years and required about US$2b of govt bailouts over the past half-decade, has become a big test for Zuma’s successor, Cyril Ramaphosa. <br/>
