Question
Case Study JOHANNESBURG - Government on Monday said it would make a decision soon on whether it would fund the business rescue practitioners (BRPs) plan
Case Study JOHANNESBURG -
Government on Monday said it would make a decision soon on whether it would fund the business rescue practitioners (BRPs) plan to save South African Airways (SAA). In their draft business rescue plan, the BRPs warned they would need billions of taxpayer money to save the failing airline. Talks were continuing after the plan was released on Monday. The Department of Public Enterprises said it had committed to a restructuring process, which would form a new, dynamic, and financially viable airline. Government said the aviation industry played a critical role in the fight against the coronavirus as Johannesburg could be a hub to distribute COVID-19 medical supplies. The BRPs said SAA could be saved, but government should commit to funding the new airline, which would cost billions. Unions, government, and creditors were expected to discuss the plan before a final version is published next week. SOURCE: Dlulane, B., Eye Witness News, https://ewn.co.za/2020/06/02/govt-mullsover-saa-s-draft-business-rescue-plan (accessed online 11 Nov 2021 @ 09h56)
QUESTION: Based on this case study respond to the following: From a corporate strategic perspective, assess the current dilemma SAA finds itself in and design a winning strategy for survival going forward. Assess the "AS IS" scenario of the SAA and propose a "TO BE" winning strategy to the SAA Board and management that will re-instate and maintain SAA's market share and previous innovative ways.
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