Page 90 - World Airnews Magazine April 2020 Edition

HANGAR
TALK

FOR WHOM THE

WARNING BELLS TOLL?

By Des Barker

bills, and to make matters worse, recently, knock-on effects of business rescue, will

had their operating licence revoked by the lead to further downgrades of confidence

he recent ruling by the Johannes- CAA over safety concerns. The profit mar- in the aviation industry with significant job

Tburg High Court that SA Express gins in all forms of aviation are small and losses and loss of skills. Historically, South

Airline be placed under business rescue funding deficiencies often lead manage- Africa has always been recognised world-

just a matter of months after South African ment to take ‘short cuts’ in terms of aircraft wide for its aviation professionalism, the

Airways (SAA) were forced into the same spare parts, reduced availability of aircraft quality of the pilots, air traffic control and
that are grounded awaiting spares, which

technical acumen, but piece by piece, this
measures, sent alarm bells ringing through in turn leads to reduced revenue streams capability is being dismantled.

the aviation industry. What a mess! – a vicious downwards vortex from which The developments at SA Express an SAA
The world is watching as South Africa’s recovery requires nothing short of ‘divine should be sending red flashing warning

State-Owned Enterprises and Parastatals intervention’ in the form of a miracle or lights to the politicians mandated to ensure

implode, one by one. But it’s not only the two. the economic sustainability of the country

international community that is alarmed, The process of business rescue will that is if they understand the strategic
but every single taxpayer that has had to require a complete overhaul of operations, importance of aviation and air power as

sit back and watch their valuable financial and it will take time to return the airline a dimension of national security. The

contributions to the efficient running of into a professional and competent outfit. pillars of military and commercial aviation

the country, being misdirected to bail-out But for yet another SOE to find itself in this in South Africa have regressed to at best,

mismanaged organisations. position is a sad indictment of the State survival mode and their ability to meet the

There has to be a law and consequenc- and damning commentary for the struc- State’s national security imperatives - is

es against such inefficient management. tures of management and governance. questionable.

Being placed under business rescue means Managing an airline is not a job for ‘sissies’. Business rescue is a mechanism allow-
the airline would be saved from being It requires astute business acumen and ing emotionally uninvolved, independent

liquidated by its creditors but will allow SA specialist experience. persons to restructure and reorganise an
Express, and SAA, who once again scored Sadly, the un-intended consequences and airline, a business of which they actually
a R3.5 billion bailout in January 2020, to have no intimate knowledge. But, just

continue operating in the short term. The maybe they can do a better job than the

public at large will be wondering if this ineffectual management teams appointed

business rescue is a ‘last ditch’ manoeuvre to oversee the management of State-
to avoid the proverbial homing missile that owned airlines? Is it too late to save SA

will lead to the final downing of the airlines. Express and SAA? South African aviation

SA Express has been suffering from finan- has always beneficiated its own aviation re-

cial and management turbulence over the sources. Will South African aviation regress

past few years and according to allegations to becoming just another user? Only time

by some in the supply chain can’t pay its will tell for whom the warning bells toll! Q
World Airnews | March 2020
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