A restructured South African Airways – a ‘new airline’ – will be internationally competitive in terms of cost, safety and quality of service. It will be a driver for investment and economy growth.
This is according to the Department of Public Enterprises (DPE).
In a statement on Workers’ Day, the DPE said a Leadership Compact had been signed (the statement appears to suggest that this was between the Minister and unions). This foreshadowed a ‘new approach, to acknowledging that there will be a major performance-based culture change for all leadership, management and employees as the transition to a new airline takes place’.
The minister had put forward a ‘very demanding timeline’ for the development of a Business Rescue Plan for the airline.
The statement acnowledged that getting this right would be challenging and that it might ‘require sacrifices, pain and hardships for all concerned, particularly for those employees who may be displaced’. Measures would need to be found to mitigate any hardship this would create.
The Covid-19 crisis had thrown the airline industry into turmoil, the department remarked.
‘Airlines around the world are failing, but with the correct vision, leadership, business and operating model, funding and implementation, the new national carrier will be well-positioned to take to the skies again and contribute to the South African and African economy,’ it said.
It is not clear what this will mean in practical terms, particularly regarding the possibility of further bailouts at a time when South Africa has no ready resources to fund them.