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Journal of Public Administration (JOPA)

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ISSN : 2
Can We Just Let a Giant Fall? Government Interventions and the Impact of Covid-19 on South African Airways

Author: Daglous Makumbe

Affiliation: University of Western Cape

Source: Journal of Public Administration, 2024-03-05 18:06:41

Accreditation: Department of Higher Education and Training (DHET)



Abstract: Can We Just Let a Giant Fall? Government Interventions and the Impact of Covid-19 on South African Airways

A tempestuous economic environment pushed South African Airways to the brink, compelling it to enter into a bankruptcy protection arrangement with the government. The situation got exacerbated by the advent of the novel coronavirus, which forced the airline to ground all its local, regional and international flights to retard, contain, and manage infections as well as flattening curves of new ones. This inevitable move culminated in the collapse of ticket sales income, a shutdown and a possibility of liquidation, which ultimately threatened thousands of jobs. Amidst incessant government efforts over the years to salvage the airline from total collapse, it has continued to incur losses. This was due to debt crunch, over-staffing, an ever-soaring wage bill, as well as customer fatigue. South African Airways was last profitable in 2011, and since there have been relentless rescue efforts instituted to salvage the airline from total coll