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Here's why a merger for SAA, Mango and SA Express would be a disaster

12 September 2019 5:04 PM
Tags:
SAA
Mango
SA Express
Airline
merger

SA Flyer Magazine's Guy Leitch says while in some ways it may be cost-effective, the merger itself would be very expensive.

Government is due to consider a "cost-saving" proposal to merge South African Airways (SAA), Mango and SA Express.

In May, Public Enterprises Minister Pravin Gordhan confirmed the merger was on the cards, but that the broader strategy still had to be worked out.

But despite its cost-saving aspirations, SA Flyer Magazine says it would be a disaster.

SA Express is absolutely on its knees and has very little chance of succeeding even in the short or medium term.

Guy Leitch, Managing editor - SA Flyer Magazine

Things are no better over at SAA, says Leitch.

SAA has got an absolute train smash on its hands without a CEO, without an executive chairman and still trying to implement a long-term turnaround strategy.

Guy Leitch, Managing editor - SA Flyer Magazine

The last thing it (SAA) needs is an additional burden of trying to integrate two other completely different airlines into its model.

Guy Leitch, Managing editor - SA Flyer Magazine

While Leitch admits that there are some cost-savings to be made - mainly by eradicating the need for three sets of management - the process of the merger itself would be extremely costly.

Listen to the full interview below:


12 September 2019 5:04 PM
Tags:
SAA
Mango
SA Express
Airline
merger

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