I have received too many questions about the SAA route network reductions announced by BRP Matuson late last week. Here's my take:
An airline route network and its supporting infrastructure provide a framework around which the design of the business structure
An airline route network and its supporting infrastructure provide a framework around which the design of the business structure
is constructed. Everything else provides support. But Matuson has announced that the BRP restructuring strategy will be announced by end of Feb for consideration by the stakeholders and creditors. What should the stakeholders wait for when the
core of the new strategy has already been announced and is being implemented? This obviously points to panic reaction because the shareholder has failed to deliver on the critical preconditions for restructuring that I identified earlier.
The handling and announcement of the route reductions was badly managed. Obviously this has massively disrupted the required confidence levels for success. We now face a total disaster from which a recovery is almost impossible. The shareholder must
take full responsibility for rushing into an ill-conceived BRP process rather than face reality and take charge.
