SAA and its group of companies have been in steady decline since around 1994, when the ANC came to power. That steady decline has turned into a free-fall over the past 10 years.
Nothing signifies the rapid demise of SAA more clearly than the recent acquisition by Comair of its own aircraft maintenance company.
At its peak, SAA Technical was Africa’s largest and best aircraft maintenance company. Commercial operators from elsewhere were assured of world-class services from SAA Technical’s 3,000-plus engineers and technicians.
At its last published results, for the year to March 2017, SAA said its technical wing employed only 2,400 people.
Investing in its operations and people has, for some time, not been a priority. SAA Technical is a shadow of its former self. It has lost valuable technical skills, chased away by corruption and uncertainty over the future as a result of overly politicised employment equity policies.
A skilled generation of white technicians has been driven away to European and Asian aircraft companies.
Comair’s aircraft maintenance move foreshadows a nosedive by SAA Technical
While Africa no longer has airline companies of any significance, save for Ethiopian Airlines and Kenya Airways, the few smaller operators still airborne have shifted their maintenance business to small European and Middle Eastern firms where they can be serviced without too much down time.
An aircraft on the ground costs more than one in the sky, so airlines can’t afford SAA Technical’s slow, unreliable service.
Comair has switched most of its heavy maintenance business to Lufthansa Technik, the German operator’s maintenance arm, according to Business Times. Comair operates its regional kulula brand as well as the British Air ways franchise in Southern Africa. So this is big business lost to SAA.
Lufthansa has caught on to SAA Technical’s ineptitude. Though it services Comair planes from its bases in Germany, Lufthansa has decided to get closer to its customers in Africa. So it is starting up a maintenance business in SA. This means Lufthansa will also be able to service chartered planes that currently have no choice but to endure the long queues and parts shortages at SAA Technical. That sets the scene for SAA Technical’s lunch to be eaten left, right and centre.
Of course there are many hurdles for SAA to clear before it can hope to revive its operations. First, it must convince finance minister Tito Mboweni to give it another gift, of R14bn, so it can publish its financial results without conceding it is broke.
To revive operations will require billions more. Then there’s the matter of merging with the equally bankrupt SA Express.
Comair will steadily grow its newly acquired Star Air Maintenance and Star Air Cargo until it is self-reliant. The maintenance business has always enjoyed better margins than commercial flights.
So if Comair’s nimble operators get it right with Star Air, SAA Technical can forget about winning back this lucrative revenue stream. Then we can really expect that flying national liability to come crashing down.