SAA makes major route cuts

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  • capetonianm
    Participant

    https://city-press.news24.com/Business/saa-keeps-financials-under-wraps-20200221

    SAA dares not publish its financial statements of the past two years because it would almost certainly be liquidated if it did, Public Enterprises Minister Pravin Gordhan has told Parliament.


    SimonS1
    Participant

    It has been reported on the city newswires that this week’s budget allocated R16.4bn to cover debt service at SAA, up from the R9.2bn allocated under the last budget.

    The carrier has now lost R32 billion over 10 years.

    Total basket case. You would be mad to buy tickets very far in advance when it could go bust at any moment.


    capetonianm
    Participant

    You’d think so, Simon, but the government seems to be prepared to put limitless amounts of taxpayers’ money into it to keep it going, purely because it suits the ANC’s agenda to have a national carrier to provide free transport and sheltered employment for their cronies.


    capetonianm
    Participant

    Cash crunch at SA Express means the airline cannot afford aircraft maintenance

    No surprise, but worrying and shameful.

    1 user thanked author for this post.

    openfly
    Participant

    South Africa’s airlines will all have even more hard times once the truth about corona virus numbers come out.
    I gather from folks down there that some care homes in the CapeTown area are in lockdown. The truth will out!
    Of course SAA will continue to operate what ever happens!


    SimonS1
    Participant

    I imagine Coronavirus will be the factor which tips SAA over the edge.


    capetonianm
    Participant

    Their JNB-LHR flight left last night with 37 Y pax and about 15 in C.


    capetonianm
    Participant

    State-owned SA Express grounded.

    SA Express said it would suspend operations from Wednesday, due in part to the impact of the Covid-19 pandemic.

    Customers will be accommodated on alternative flights and “non-critical” staff will be placed on compulsory leave, the airline said in a statement issued late on Tuesday night.

    “In light of adverse recent developments including the impact of the Covid-19 pandemic, SA Express announces that it will suspend operations from 18 March 2020 until further notice,” the statement read.

    SA Express is a state-owned, regional airline operates domestic routes as well as to regions such as Namibia, Botswana, Zimbabwe and the DRC.

    SA Express was placed under business rescue by order of the courts in early February, Fin24 previously reported.

    For avoidance of doubt, SA Express and SA Airlink are entirely separate companies.


    capetonianm
    Participant

    I am not sure what SAA’s definition of ‘international’ is, but it appears that they mean intercontinental.

    Currently in the air is a JNB-LOS, a WDH JNB, and a MRU-JNB has just landed.

    Tomorrow’s picture may be very different.


    capetonianm
    Participant

    Just like the ostriches which are so iconic to South Africa, the government has buried its collective head in the sand for many years in the hope that the impending danger would disappear.

    The airline has been, to use another avian analogy, a dodo or a dead duck for many years. It could have been restructured and placed under proper management and run by people who could have trimmed it down and turned it into profit. That never suited the agenda of those who had their fat snouts in the trough and wanted free tickets and sheltered employment for themselves, and their tribes and friends.

    Thus we end up with thousands (not just the 4700) unemployed and on benefits, suffering hardship, at the worst possible time. They want to sell off assets, the A340s, at a time when just about every other airline has sent its 4 engined aircraft for storage or scrapping. They are almost worthless other than for scrap and parts.

    If it weren’t so sad, it would be funny, a textbook example of how not to run an airline, in fact how not to run a country.


    Tom Otley
    Keymaster

    South African Airways’ Choice: Managed Job Cuts, Liquidation

    South African Airways administrators delivered a stark choice to those opposing their plan to fire the entire workforce and sell assets: It’s either that or full liquidation.

    The state-owned carrier neither has the funds to continue trading nor pay salaries beyond the end of this month, and the government has so far refused requests for financial assistance, the team led by Les Matuson and Siviwe Dongwana said in a Thursday letter addressed to “all affected persons.”


    openfly
    Participant

    The SA government has announced this morning that a new airline SAA 2020 will emerge in the next few days. Of course all the debts from the past can be written off. The corrupt ministers and SAA board can breathe a sigh of relief that Corona Virus has given them a lifeline. This must prove that corruption works.

Viewing 15 posts - 16 through 30 (of 97 total)
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