South African Airways decided to cut down its international route network to 52 after a long stretch of corporate recovery when it resumed operations last September.
Unfortunately, the African carrier's efforts were insufficient. Despite being at an already less-than-ideal size for a national carrier, 20 of the airline's 52 international licenses were canceled by the International Air Services Licensing Council. Because these routes hadn't been used for more than three months, the cancellation process was carried out without negotiations.
The airline believes
it will soon be able to obtain its license and resume its era. Many African
airlines are striving for market share as opportunities and demand grow. Since
the International Air Services Licensing Council has not been properly formed,
filling the void may take some time.
The airline would need
a lot of money, though, to increase its fleet size and add more flight
operations. The Takato Consortium, a corporation named as an investor in South
African Airways following its economic rescue last year, was meant to provide
the financing to help the airline stay off of public assistance by purchasing a
51% interest for 51 Rand ($3.16).
According to the
Department of Public Enterprises, "They have the money and want this done
sooner rather than later. In any transaction, money will not flow until it gets
the green light. We are waiting for the approvals and regulatory hurdles; after
that, there will be a change of ownership. We expect to see money flow into the
airline after that.
With each passing day,
South African Airways' position as the national carrier deteriorates
progressively. The airline has lost some of its appeals to potential investors
or partners due to its small fleet and much smaller international network.
South African Airways is still at a crossroads since it appears to be a waiting
game for the necessary funds.
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