You can also listen to this podcast on iono.fm here. ADVERTISEMENT CONTINUE READING BELOW JEREMY MAGGS: Well, this is hardly shocking news and probably shouldn’t come as a surprise, but the controversial deal to sell 51% of SAA to the Takatso consortium has crashed after the government raised the price for the airline. So what now for the troubled carrier?Let’s turn our attention to Guy Leitch, who is an aviation commentator, writer and editor of SA Flyer Magazine. Guy, a very warm welcome.
Here they might be operating marginally at a break-even level. But the moment you start putting in the necessary reserves for aircraft maintenance and depreciation and so on, a marginally positive cash flow sinks into a big loss. That’s probably how they’re getting by for now.GUY LEITCH: I would think so.
Unfortunately, the Competition Commission ruled out the Global Aviation input and pushed them out of the deal. I think that that was really when the wheels fell off the deal. JEREMY MAGGS: How difficult is it, Guy, to determine the true value of South African Airways in the current market?