Scandal hit South African bailed out again

With a string of CEO’s and senior managers allegedly dismissed or suspended for misdemeanours, ranging from possible harassment to alleged improper use of airline resources, and confidence low, someone had to act.  South Africa’s government has been forced to give the airline some $300 million to pay off a loan to Standard Chartered or face default, which would have crippled the airline. 

Last year it faced a ban from Hong Kong, and was being investigated for tax evasion and misuse of funds.

With inefficiency rife, not least the fact the airline is still burdened by expensive to run A340’s, and competition from the ME3 siphoning off business at an alarming rate, the airline is still loosing substantial sums and investors cannot be found. When it’s mired in so much controversy attached to a government considered to be suffering from corruption at levels all the way to the presidency, it’s no surprise there are no white knights.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s