The Money Show SAA faces losses again; Why inflation targeting is shifting to 3%
7 snips
Jul 18, 2025 Bernolo Zwane, owner of the fashion label Nje, discusses the evolution of minimalist fashion, emphasizing quality and versatility in modern design. Aviation expert Phutego Mojapele tackles the troubling financial state of South African Airways, detailing challenges like rising fuel costs and leasing difficulties. They also explore the shift towards a 3% inflation target, examining its potential impact on the economy and the debate surrounding fiscal policies, underscoring the need for stability in turbulent times.
AI Snips
Chapters
Transcript
Episode notes
SAA's Financial Struggles Explained
- SAA struggles with expensive aircraft leasing and fuel costs due to legacy conditions and market constraints.
- Their choice of aircraft is costly and availability is limited, worsening financial pressure despite profitable routes.
Potential Cost Savings with Boeings
- SAA could reduce costs by switching to Boeing aircraft, which are cheaper and more readily available.
- Safair's success with Boeing shows a possible model for SAA to improve leasing terms.
Risks of Lowering Inflation Target
- Lowering the inflation target to 3% risks monetary over-tightening and stifling growth and jobs.
- South Africa's economy, with supply-side inflation and structural issues, may not be ready for such a target.