South African Airways: Hope for a Brighter Future

South African Airways (SAA) was until a few years ago not only the leading airline on the African continent but also a globally recognised and respected brand. The airline has, however, experienced turmoil the last few years, fuelled by the deregulation of the South African airline industry, the introduction of low-cost carriers (LCCs), rising costs, increased competition and industrial action by their employees. Although much of these contributing factors were beyond their control, arguably the biggest factor leading to their failure was due to their own doing: poor management and governance. Not only was the Board frequently changed, but the airline also had to be bailed out by the South African government on numerous occasions. Despite implementing turnaround initiatives, the airline had to enter business rescue in a last effort to see whether the airline can be saved, or if it should be liquidated. Only the future will tell whether a rejuvenated and streamlined South African Airways will emerge from the business rescue process and if the airline will be able to soar among the prestigious global airlines again.