South African Airways 'near bankruptcy'

[Mattg]

South African Airways has been cancelling flights left, right and centre for the past week or so due to ongoing staff strikes. The airline's acting chair is now uncertain that SAA will have enough money to meet its obligations at the end of this month due to a lack of revenue coming in.

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www.thesouthafrican.com

 

[docjames]

Ouch. But it’s hard to imagine the SA government will let it fall over (but you never know).


Edit: Also the pic used at the top of that article has an Air Berlin aircraft behind the SAA aircraft - somewhat prescient?

 

[Melburnian1]

South African Airways has been cancelling flights left, right and centre for the past week or so due to ongoing staff strikes. The airline's acting chair is now uncertain that SAA will have enough money to meet its obligations at the end of this month due to a lack of revenue coming in...

Interestingly, the second of two comments at bottom claims 'now its aircraft are unsafe...as well..'

Is this claim credible?

 

[Denali]

I have SAA bookings for next April (Johburg to Kruger). Just checked, worse case senario is its a 4hr drive.

 

[Guvner]

I have SAA bookings for next April (Johburg to Kruger). Just checked, worse case senario is its a 4hr drive.

and an easy drive at that.

 

[Denali]

and an easy drive at that.

Good to know. In hindsight maybe we should have planned to drive but hubby is a bit nervous about the new reports about violence.

 

[N860CR]

I have SAA bookings for next April (Johburg to Kruger). Just checked, worse case senario is its a 4hr drive.

Is it an airlink flight?

 

[Mattg]

Is it an airlink flight?

On that note, what would happen if SAA did go out of business with its subsidiaries such as Mango Airlines? Do they go as well?

 

[Jacques Vert]

and an easy drive at that.

Although closer to 6 when we did it a couple of years ago, due to traffic and roadworks. Leave yourself a bit of extra time, just in case.

 

[vetrade]

On that note, what would happen if SAA did go out of business with its subsidiaries such as Mango Airlines? Do they go as well?

SAA will never go out of business. Its financial problems are fundamentally due to government corruption with Jacob Zuma and his family (his sister-in-law used to run SAA) / cohorts siphoning off many millions. Cyril Ramaphosa has replaced Zuma as President now but many of the Zuma acolytes remain and corruption is so widespread in SA it will never be contained as long as the ANC rules. As far as SAA is concerned, the government always bails it out whenever money problems arise (i.e. every few years) - the reality is that there are too many people with their snouts in the trough for them to let it fail so money which should be used to alleviate poverty is used to line the pockets and OS bank accounts of those in positions of power

 

[N860CR]

On that note, what would happen if SAA did go out of business with its subsidiaries such as Mango Airlines? Do they go as well?

As mentioned above it’s unlikely that SAA will go under totally. If it were to though, Mango and Airlink operate independently and by all accounts are profitable in their own right (Airlink in particular). SA Express would likely follow the mothership down.

I’d expect to see Airlink grow to fill SAAs shoes (they already operate a lot of the intra-Africa flying) and they’re close enough to the main carrier to keep the ANCs dodgy deals in place.

 

[juddles]

As vetrade and others have said, it is unlikely SAA will actually cease flying. There is no side in SA that would want that. So my small opinion is that those with forward international bookings should not fret I would book with them tomorrow.

 

[drron]

Insurance companies refusing to cover SAA for travel agents.So Flight centre SA refusing to sell their tickets.

Alitalia and South African Airways teeter closer to collapse

Two of the world’s major national airlines have hurtled closer to the possibility of going bust after a difficult weekend that’s left both with even more uncertain futures.

www.news.com.au

 

[vetrade]

When was that article drron? The link's not working for me.

 

[drron]

Yesterday.still working for me.

 

[DC3]

Article is dated 2/12/19

 

[vetrade]

Yesterday.still working for me.

Have got it now, thanks - got an error message all afternoon that their server couldn't be accessed.
Interesting article - enough to ponder how long before the dam wall breaks.............

 

[jenaand]

SAA has now been placed into business rescue (as of this morning).

Business | News24

South Africa’s premier site for breaking business and finance news, stock market data, economic analysis, personal finance and investment information.

www.fin24.com

 

[drron]

And Loyalty Lobby's version of the situation.

South African Airways Put Into Bankruptcy Protection

South African Airways has filed for a business rescue (bankruptcy protection) to gets its finances in order.

loyaltylobby.com

Reading between the lines they should be able to renegotiate contracts with Zuma cronies.

 

[juddles]

SAA has now been placed into business rescue (as of this morning).

Business | News24

South Africa’s premier site for breaking business and finance news, stock market data, economic analysis, personal finance and investment information.

www.fin24.com

I think the business/rescue cycle of South African is closely up there with the cycle of Hawaiian 717's