OpinionPREMIUM

LETTER: SAA is not an exception

Virgin Australia was carrying an unsustainable debt of about R60bn and its government refused to give it another R17bn bailout

Aircraft from Virgin Australia  on the tarmac at the domestic terminal of Sydney Airport in Australia.  Picture: REUTERS/David Gray
Aircraft from Virgin Australia on the tarmac at the domestic terminal of Sydney Airport in Australia. Picture: REUTERS/David Gray

Some readers may have missed the sad story in Business Day on April 21 about the airline that has just been placed under administration as a prelude to liquidation. True, it was carrying an unsustainable debt of about R60bn and its government, though already subsidising some of its routes, had refused to give it another R17bn bailout.

The airline is Virgin Australia. In the depths of our Covid-19 challenges, we need to avoid too much SA exceptionalism. Running an airline is a difficult business, particularly if you’re stuck at the end of a continent, and SAA is just one of the family of case studies.

Mike Muller

Johannesburg 

JOIN THE DISCUSSION: Send us an e-mail with your comments. Letters of more than 300 words will be edited for length. Send your letter by e-mail to busday@bdfm.co.za. Anonymous correspondence will not be published. Writers should include a daytime telephone number.

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