[cwoodward]

The ANC have no shame !

[LuganoPirate]

[quote quote=1096852]Another day, another new CEO of SAA.

No experience of running an airline but no doubt a good party chap.[/quote]

He’s actually a well respected and very competent person. If he’s allowed to, and he may have a battle with the unions, I think he has a good chance of making the transition a success. Time will tell!

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sparkyflier

[cwoodward]

Indeed time will tell but I fear the worst.

[SimonS1]

So the Government has sold 51% of SAA.

Interesting to see Gidon Novick involved, someone who at least knows the business.

Time will tell whether the Government/ANC can avoid interfering or whether the new SAA is saddled with all the old millstones like providing free travel for the cadres.

https://www.dailymaverick.co.za/article/2021-06-11-government-gives-up-its-majority-ownership-of-saa/amp/

[BA789]

South African Airways To Relaunch With 51% Private Ownership

https://www.simpleflying.com/saa-relaunch-private-ownership/amp/

time will tell if this works out, but it does not sound convincing

[LuganoPirate]

Will be interesting how this pans out. As long as they can cut staffing levels, and the government pays for their MP’s travel, and does not interfere, it has a good chance of being successful.

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BA789

[cwoodward]

Not a lot of money is involved in acquiring the 51% stake. Reuters report only some US$220 million -to me it looks rather too cheap to be an arms length deal and the background would I feel be interesting. Initial indications are that the subsidiary companies will be closed although Mango is possibly saleable.
It seems that the SA governments ultimate aim is to sell all but 33%.

[LuganoPirate]

[quote quote=1102371]Not a lot of money is involved in acquiring the 51% stake. Reuters report only some US$220 million[/quote]

Not even worth that I think. In fact it could be said they overpaid. SAA own no aircraft, all are leased bar a few old and inefficient ones. It’s given up so many routes, Paris, Rome, Zurich to name a few as well as CPT – LHR and FRA. It’s AirChef subsidiary is close to bankrupt and it subcontracts most of it’s engineering work. Mango is certainly worth something though it faces stiff competition from Safair, CEM Air and Kulula (also in difficulties). So I do wonder what it’s really worth? It’s name and its position perhaps, but $220m, hmmmm!!

[cwoodward]

Possibly even in this depressed market its 8 X A340s and 3 X A319s plus the remaining A330 would fetch together close to US$100 million
The A340s are probably each worth about US$7 million on todays market. There looks to be an active market for the A319s and they could I understand fetch upwards of US$12 million each.
The 330 is if I recall correctly possibly missing an engine !
There are of course also the 12 elderly 737 -800 transferred to Mango airlines in 2019 but still owned and serviced by SAA. The fact that some of them are still in daily operation makes them worth something.
SAA of course still have the rights to many routes and arguably the brand has survived, damaged of course but still fondly remembered and clearly considered saleable. As Reuters reported in May 2021 SAA are now solvent.
To me it looks like a decent deal at the money particularly if a larger shareholding will become available.

[Author]

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