[capetonianm]

Govt readies asset sales as SAA faces funding crisis

0 minutes ago Loni Prinsloo and Amogelang Mbatha

President Cyril Ramaphosa’s administration is accelerating the sale of government assets to fund cash-strapped airline SAA and other distressed state-owned companies.

The most urgent need is at South African Airways. It must know by Sunday if it will get R2bn from the government to avoid a disruption in its operations. The loss-making carrier has already burned through a loan it got from banks last month, according to people familiar with the matter. Lenders are hesitant to step in again, said the people who asked not to be identified because the talks are ongoing.

https://www.fin24.com/Economy/South-Africa/govt-readies-asset-sales-as-saa-faces-funding-crisis-20200118

[capetonianm]

Just announced that the government (=taxpayer) is to provide SAA with the R2bn. needed to keep it afloat until the next crisis point.

The quote below appears to contradict the above. Who knows? It does imply that for a short while it’s business as abnormal!

Govt looking for funds and a partner to keep SAA in the skies
21 minutes ago Lameez Omarjee

Despite not yet being able to contribute R2bn as part of its commitment to the business rescue process of SAA, the department of public enterprises says it is working with National Treasury to raise funds to keep SAA in the skies.

The department issued a statement on Sunday evening in which it reassured its commitment to the business rescue process. This follows reports last week that the business rescue practitioners had not yet received the required R2bn, while the airline was facing a cash crunch.

Last week Finance Minister Tito Mboweni told journalists at the sidelines of a pre-WEF breakfast, that Treasury was still “trying to find additional financing” for the airline.

[capetonianm]

Situation unchanged this morning, no clarity after the deadline has passed. They will somehow ‘find’ the money they are looking for. A trip to Specsavers may save the situation.

Government looking for R2bn to save SAA
20 January 2020 – 07:12 By IAVAN PIJOOS
The SAA board last month adopted a resolution to place the airline into business rescue, hoping to facilitate the rehabilitation of the financially distressed company.

Government is still looking for R2bn to contribute to SA Airways (SAA), as part of its commitment to the airline’s business rescue process.

Meanwhile, the department of public enterprises said in a statement on Sunday evening that it was working with National Treasury to raise funds to save SAA.

“We are determined to contribute to the business rescue process so that we could minimise job losses and give birth to a rejuvenated SAA that all South Africans could be proud of.

“Collective effort is needed to make SAA a premier African airline and Star Alliance member,” it said.

The SAA board last month adopted a resolution to place the airline into business rescue, hoping to facilitate the rehabilitation of the financially distressed company.

At the time, public enterprises minister Pravin Gordhan said R4bn was needed for the operation, with government and creditors jointly committed to the process as post-commencement finance (PCF).

The department said it was determined to break the past patterns of “bailouts”, as these had become “moral hazards”.

“It is a decisive move that demonstrates that government will undertake the necessary bold steps to reposition its assets in such a way that they do not continue to depend on the fiscus and thereby burden taxpayers.

“The creation of a sustainable, competitive and efficient airline with a strategic equity partner remains the objective of government through this exercise,” it said.

[capetonianm]

Travellers are being advised that as many as 19 SAA flights have been removed from the Airline Global Distribution Systems, as Treasury struggles to raise the necessary funds to keep SAA afloat.

Traveller24 has received confirmation via Flight Centre about the flight cancellations.

More details to follow.

This follows a tweet by the Online Travel Agent, advising their customers that “a number of South African Airline’s (SAA) domestic and international flights have been cancelled”.

[capetonianm]

SAA Domestic flight affected:

Johannesburg (JNB) – Cape Town (CPT)

SA303 Depart 0530 Arrive 0735 Dates: 20, 21 & 24 January

SA307 Depart 0700 Arrive 0905 Dates: 21 January

Cape Town (CPT) – Johannesburg (JNB)

SA316 Depart 0820 Arrive 1015 Dates: 20, 21 & 24 January

SA322 Depart 0950 Arrive 1145 Dates: 21 January

Johannesburg (JNB) – Durban (DUR)

SA527 Depart 0630 Arrive 0735 Dates: 20, 21,22 & 23 January

SA543 Depart 0955 Arrive 1100 Dates: 20, 21,22 & 23 January

SA571 Depart 1655 Arrive 1800 Dates: 20 & 21 January

Durban (DUR) – Johannesburg (JNB)

SA534 Depart 0805 Arrive 0910 Dates: 20, 21,22 & 23 January

SA550 Depart 1130 Arrive 1235 Dates: 20,21, 22 & 23 January

SA578 Depart 1840 Arrive 1945 Dates: 20 & 21 January

SAA international flights cancelled:

Johannesburg (JNB) – Munich (MUC)

SA264 Depart 2115 Arrive 0700 Dates: 20, 21,22,23 & 24 January

Munich (MUC) – Johannesburg (JNB)

SA265 Depart 2030 Arrive 0820 Dates: 20, 21,22,23 & 24 January

Mango has confirmed it is re-accommodating affected passengers on certain routes operated by both airlines to minimise disruption.

SAA says it will be reviewing further possible flight schedule amendments over the coming days.

Affected passengers seeking a refund are being advised to contact the airline or their travel agent to make alternative arrangements:

SAA website for updates, SAA has advised it will not be able to assist with disruptions at the airport due to the strike.

[openfly]

Comair and Safair rubbing their hands (and wallets) in glee!
How long will it be before the refuellers refuse to supply fuel without cash upfront?!

[capetonianm]

Speaking to friends in the industry this morning, the message is :
“We don’t have any (or only a few) bookings with SAA as we/customers have no confidence, nor do they want to put more money into the grasping bottomless pockets of the ANC”
No forward bookings = no/limited cash flow.
Cancelling flights = reduces confidence and frequency which will reduce bookings.
No cash flow = no payments to providers.
If the airline is bailed out again we will see a repeat performance in a month or so.
It’s in a death spiral.
The end is nigh, or for those who understand Afrikaans, the airline is genaai.

A great shame..

[canucklad]

[quote quote=987562]A great shame..[/quote]

Indeed , and if it does fail , everyone involved should hang their head in shame !!

The collapse of SAA, will just reinforce racist belief that “Black Africa” can’t manage complex businesses
I don’t know that much about South Africa or SAA but from a distance (and a little research) it appears that the current administration are consistently displaying all the behaviours of cronyism.
At the very least making commercial decisions based on political dogma, which in turn is based on post-apartheid balance restoration is simply business suicide.

I’m not a big fan of IAG or the principal of monopolistic consortiums , but I’d advice the Pretoria Ostriches to sell the airline debt free to IAG for a £1 or Rand equivalent on the understanding that it remained maintained it’s history !

On a wee side note, I used to stare out the Diamond lounge windows across the wintry apron at the 3 SAA jumbos parked up and vowed that one day I’d be sitting on one , setting of to the sun than heading up to face the dreich Edinburgh drizzle —– So yes a great shame !

[capetonianm]

Indeed , and if it does fail , everyone involved should hang their head in shame !!
Correct, but they won’t because they have no shame.

The collapse of SAA, will just reinforce racist belief that “Black Africa” can’t manage complex businesses
Nothing racist about that, it’s a demonstrable fact to which there are few exceptions. It’s not so much about lack of ability, it’s about blatant fraud and theft.

I don’t know that much about South Africa or SAA but from a distance (and a little research) it appears that the current administration are consistently displaying all the behaviours of cronyism.
At the very least making commercial decisions based on political dogma, which in turn is based on post-apartheid balance restoration is simply business suicide
A hangover from the days of Zuma, the Guptas, and ‘State Capture’. Although in apartheid days appointments were also made on political lines, those appointed were at least semi-competent as they had worked their way up through the ranks of whatever industry it was, so at least had some experience, unlike most of the present lot. Dudu Myeni was the prime example of that.

On a wee side note, I used to stare out the Diamond lounge windows across the wintry apron at the 3 SAA jumbos parked up and vowed that one day I’d be sitting on one, setting of to the sun than heading up to face the dreich Edinburgh drizzle —– So yes a great shame !
I hope you did, or will, make it to visit such a beautiful country.

The distribution manager of Safair, Gordon Kirby, was interviewed on 567 Cape Talk this morning. I couldn’t actually hear him rubbing his hands in glee, but ….. well, good for him, it’s a good independent airline and it’s the only domestic carrier I will now use if I have to fly in ZA.

[capetonianm]

You can keep flying SAA thanks to R3.5bn in funding – business rescue practitioners

https://www.fin24.com/Companies/Industrial/you-can-keep-flying-saa-thanks-to-r35bn-in-funding-business-rescue-practitioners-20200128?

Keep on trucking … until the next crisis.

[openfly]

Surprise, surprise.

[AMcWhirter]

It’s possible SAA may return as a ‘slimmed down’ carrier.

There could be only 88 pilots instead of 625 and far fewer staff, reports Aerotelegraph.

https://www.aerotelegraph.com/en/new-south-african-airways-to-take-off-in-2021

[AMcWhirter]

Chairperson resigns.

https://www.news24.com/fin24/Companies/Industrial/saa-chairperson-resigns-ahead-of-possible-bailout-announcement-from-mboweni-20201027

[cwoodward]

I see that there is a SAA flight (flt SA280) scheduled from Jo’burg to Perth this evening ETA 12.15 Sunday. Aircraft = A330.
It appears that they maybe still alive and flying again ?

[SimonS1]

Another day, another new CEO of SAA.

No experience of running an airline but no doubt a good party chap.

Running an airline that is not running. Should be fun.

https://www.news24.com/amp/fin24/companies/just-in-saa-gets-a-new-interim-ceo-20210414

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