Pilots fly free, passengers have to get off
South Africa keeps alive the highly deficient national airline with infusions of money. In the fight for a recovery by South African Airways, the spoiled pilots in the focus are now available.
Pravin Gordhan does not mince words. South African Airways "technically insolvent", the South African Minister of finance said recently in Parliament. Only thanks to repeated injection of funds by the Government, the airline could fly further. The latest figures show also a bleak picture of the conditions at SAA as the South Africans call their airline most.
After months of delays, South African Airways has presented their books for the year 2014/15. You show a loss of 4.7 billion rand or $ 306 million. There resulted a loss of 1.8 billion in the period 2015/16 again.
Additional costs by 2 billion rand per year
The Government in Pretoria came around about not to issue a guarantee for SAA again. It amounted to 4.7 billion rand. Thus, the outstanding State guarantees for the once-proud airline already add up to 19 billion. The latest financial aid are connected to 11 obligations. Among Other things must reduce costs more consistently, be shut down loss-making routes and better informed the Ministry of finance.
That it goes bad South African Airways and the airline was in the last years of mismanagement, has become known in South Africa. But after the renewed losses, new misdeeds to the public. The pilots are the latest victims. According to a report by the newspaper the citizen, based on internal reports of the airline, they are pampered with excessive extras.
Consistent five-star hotels
So night pilots of South African Airways apparently consistently in five-star hotels, while the flight attendants in two-star houses are accommodated. In addition, they regularly receive free flights in business class with her family. They enjoy a higher priority than paying passengers. Not infrequently passengers must be, loaded out therefore resulting in loss of revenue and additional costs. And if the pilot's divorcing, both ex-wife and the new wife or girlfriend get the benefits.
Pilots may be sick with the national airline up to 180 days per year. Also Sabbath years be granted generously. No wonder apply much foreigners for places, not even living in the country and then free to be flown to their flight missions. This further increased the personnel expenses.
Degradation so far failed
Total South African Airways therefore spends 2 billion rand for pilots per year. 12 percent of the employees are responsible for 48 percent of the wage costs. All attempts to scan the lush pay, were so far unsuccessful. The trade unions are too strong.