Today's Labour News

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SA ExpressBusinessLive writes that the state-owned regional airline South African Express (SAX) is unlikely to recover from being grounded by the SA Civil Aviation Authority (Sacaa) and should be sold.  

This is according to transport economist and aviation specialist Joachim Vermooten.  The Sacaa grounded the airline in May over noncompliance with safety regulations.  Vermooten said on Monday that it would be extremely difficult for the airline to recover revenue and market share when it resumed flying.  "The best thing would be to redeploy [SAX’s] skilled personnel to SAA, where there is a shortage, and then to sell it," he opined.  In the context of a R21.1bn shortfall at parent company SAA, he reckoned the cost to get SAX back into the market would be enormous, even not counting the cost of restructuring and paying off creditors.  Earlier in June, Matsietsi Mokholo, SAX’s acting CEO, said that although she arrived at the airline too late to prevent the grounding of nine of its 21 aircraft, the carrier could still be saved and that it “still has time."


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