SAA's financial woes
Aug 24, 2016, 12:22 pm
#16
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
Hong Kong threat to block broke SAA
"he standoff between President Jacob Zuma and the National Treasury over who should lead SAA is propelling the airline into an unprecedented crisis, with a major international destination threatening to ground all flights in the next two weeks.
Hong Kong's registrar of companies has given the airline until September 6 to submit its annual financial statements or face possible deregistration, which would mean SAA would no longer be able to fly there."
Full story
Johan
Hong Kong's registrar of companies has given the airline until September 6 to submit its annual financial statements or face possible deregistration, which would mean SAA would no longer be able to fly there."
Full story
Johan
Aug 24, 2016, 1:55 pm
#17
Join Date: Jan 2016
Posts: 79
Happily the fortelling of doom on this thread - since Jan 2013 - has yet to materialise.
The brinkmanship engaged in by Zuma et al in setting the Hawks upon Gordhan with the Local Government Elections now over distasteful and reckless, threatening the currency and economy let alone SAA.
One can but pray that self interest if not altruism motivates ANC rank and file to overthrow the corrupt cabal ruling before they sink with the ship.
That SAA cannot issue acceptable financial statements without a blanket Treasury promise to shore it up itself of concern.
Flying to JHB and back from LHR in J in a couple of weeks but I hope, more than that there is no disruption thereof, that sanity prevails and SAA helped to soar..
The brinkmanship engaged in by Zuma et al in setting the Hawks upon Gordhan with the Local Government Elections now over distasteful and reckless, threatening the currency and economy let alone SAA.
One can but pray that self interest if not altruism motivates ANC rank and file to overthrow the corrupt cabal ruling before they sink with the ship.
That SAA cannot issue acceptable financial statements without a blanket Treasury promise to shore it up itself of concern.
Flying to JHB and back from LHR in J in a couple of weeks but I hope, more than that there is no disruption thereof, that sanity prevails and SAA helped to soar..
Last edited by radiata; Aug 26, 2016 at 4:01 pm
Aug 26, 2016, 12:49 pm
#18
Join Date: Mar 2005
Programs: fwp blood diamond, dykwia uranium
Posts: 7,251
ok so someone overthrows then what? it's not like these politicians have anything else they can fall back on like their law or medical degrees. politics is both tribalism and religion
saa will be captured, although i am more open minded to the notion that i am being unnecessarily cynical considering how constructive coalition building went (for such a fledgling democracy!) the last few weeks
Sep 1, 2016, 5:43 am
#19
Join Date: Jun 2008
Programs: TK*G (E+), IHG Plat Ambassador
Posts: 7,884
We received it in our Corpo T/Agency weekly news update:
I guess they received it from SAA.
August 26, 2016
Johannesburg - South African Airways (SAA) needs a going concern government guarantee in order to finalise its Annual Financial Statements (AFS). The matter has been brought to the attention of the shareholder representative (National Treasury) and there are extensive, on-going engagements on the matter with the aim of finding a resolution and to provide certainty to all concerned. This does not mean the company is facing liquidation as no such decision has been communicated by the South African government as the sole shareholder of the airline.
Similarly, SAA does not need to be placed under business rescue as the airline is able to and continues to pay its debts as and when they become due and payable. The airline has neither defaulted nor been unable to meet its obligations to service its debts - a key determining factor to justify placing a company under business rescue. Those advocating for business rescue are making an absurd misdiagnosis.
The proponents of these claims appear to be gravely oblivious of the effects these statements have not only on the airline but on the country as well.
It is highly unlikely that there will be service interruptions in September and/or October anywhere on our route network, including Hong Kong, due to the grounding of our aircraft. Where concerns are raised by the relevant regulatory authorities, we continue to engage with them to ensure that we remain compliant and continue to operate.
We would like to assure all our customers that as part of our compliance and business continuity processes, we constantly ensure that we meet the compliance requirements in all jurisdictions and markets where we operate.
The Board continues to do everything in its power to ensure that SAA gets government guarantees. We have also engaged with the shareholder on the licensing issue which also relies on shareholder financial assurances for its renewal by the end of September.
Whilst it is true that the airline's balance sheet needs to be strengthened, it is important to understand that its funding requirements, whether in the form of guarantees by the shareholder or a cash injection (which the airline has not received for more than a decade), are intended for future and not current or immediate obligations.
SAA has a sound professional relationship with its shareholder representative, Finance Ministry and the National Treasury. We have never understood the relationship to be personal in any way between ourselves to a point where it is characterised as a rift between the Minister and the Board chairperson at SAA, Ms Dudu Myeni. SAA reject such averments as they have no basis in fact. They appear to be driven by those with an agenda aimed at driving a wedge between the Minister and Ms Myeni. They must not be allowed to succeed.
The airline would also like to reiterate that SAA Board members do not appoint themselves. Board members serve at the invitation of the shareholder representative. It follows that any Board rotations and/or new appointments to serve, is a prerogative of the shareholder representative.
The airline is resilient and has overcome challenges in the past - consequently, we remain confident that resolutions on these matters will soon be found.
Source: South African Airways
Johannesburg - South African Airways (SAA) needs a going concern government guarantee in order to finalise its Annual Financial Statements (AFS). The matter has been brought to the attention of the shareholder representative (National Treasury) and there are extensive, on-going engagements on the matter with the aim of finding a resolution and to provide certainty to all concerned. This does not mean the company is facing liquidation as no such decision has been communicated by the South African government as the sole shareholder of the airline.
Similarly, SAA does not need to be placed under business rescue as the airline is able to and continues to pay its debts as and when they become due and payable. The airline has neither defaulted nor been unable to meet its obligations to service its debts - a key determining factor to justify placing a company under business rescue. Those advocating for business rescue are making an absurd misdiagnosis.
The proponents of these claims appear to be gravely oblivious of the effects these statements have not only on the airline but on the country as well.
It is highly unlikely that there will be service interruptions in September and/or October anywhere on our route network, including Hong Kong, due to the grounding of our aircraft. Where concerns are raised by the relevant regulatory authorities, we continue to engage with them to ensure that we remain compliant and continue to operate.
We would like to assure all our customers that as part of our compliance and business continuity processes, we constantly ensure that we meet the compliance requirements in all jurisdictions and markets where we operate.
The Board continues to do everything in its power to ensure that SAA gets government guarantees. We have also engaged with the shareholder on the licensing issue which also relies on shareholder financial assurances for its renewal by the end of September.
Whilst it is true that the airline's balance sheet needs to be strengthened, it is important to understand that its funding requirements, whether in the form of guarantees by the shareholder or a cash injection (which the airline has not received for more than a decade), are intended for future and not current or immediate obligations.
SAA has a sound professional relationship with its shareholder representative, Finance Ministry and the National Treasury. We have never understood the relationship to be personal in any way between ourselves to a point where it is characterised as a rift between the Minister and the Board chairperson at SAA, Ms Dudu Myeni. SAA reject such averments as they have no basis in fact. They appear to be driven by those with an agenda aimed at driving a wedge between the Minister and Ms Myeni. They must not be allowed to succeed.
The airline would also like to reiterate that SAA Board members do not appoint themselves. Board members serve at the invitation of the shareholder representative. It follows that any Board rotations and/or new appointments to serve, is a prerogative of the shareholder representative.
The airline is resilient and has overcome challenges in the past - consequently, we remain confident that resolutions on these matters will soon be found.
Source: South African Airways
Sep 2, 2016, 12:11 am
#21
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467
The Board continues to do everything in its power to ensure that SAA gets government guarantees.
Everything except appoint a full board, ditch the corrupt chair and institute proper corporate governance.
Sep 10, 2016, 1:26 pm
#25
Join Date: Jan 2009
Location: DEN
Programs: UA *G, Accor/Sofitel Gold, InterContinental Platinum
Posts: 462
This may keep them alive for now.
FINANCE MINISTER GIVES SAA BAILOUT APPLICATION THE NOD
http://ewn.co.za/2016/09/09/Pravin-G...cation-the-nod
FINANCE MINISTER GIVES SAA BAILOUT APPLICATION THE NOD
http://ewn.co.za/2016/09/09/Pravin-G...cation-the-nod
Sep 10, 2016, 11:40 pm
#26
Join Date: Nov 2012
Location: BGI (ex-YYC, YYZ)
Programs: AC*G-E100K (once again)
Posts: 1,701
This may keep them alive for now.
FINANCE MINISTER GIVES SAA BAILOUT APPLICATION THE NOD
http://ewn.co.za/2016/09/09/Pravin-G...cation-the-nod
FINANCE MINISTER GIVES SAA BAILOUT APPLICATION THE NOD
http://ewn.co.za/2016/09/09/Pravin-G...cation-the-nod
And a good thing for travellers.
Sep 24, 2016, 2:43 pm
#27
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
"Following the revelation by Finance Minister, Pravin Gordhan, in Parliament on 13 September that SAA had recorded a loss of R4,7bn for the year 2014-2015 and R1,8bn for 2015-2016, the airline could find that the conditions attached to the R4bn government guarantee might force it to axe unprofitable routes.
As one of the conditions set by the Minister, SAA needs to scale back operations and close routes that have been making losses for longer than one year. The Minister said some of SAA’s long-haul routes, including Hong Kong, would need to be scrutinised. However, an industry expert told Tourism Update that certain routes, like Hong Kong, although losing money, still added value to the network.
An inside source at SAA, said loss-making routes that could face the axe were Brazzaville, Cotonou and Pointe Noire, while domestically Port Elizabeth and East London also lose money.
"
Full story
Johan
As one of the conditions set by the Minister, SAA needs to scale back operations and close routes that have been making losses for longer than one year. The Minister said some of SAA’s long-haul routes, including Hong Kong, would need to be scrutinised. However, an industry expert told Tourism Update that certain routes, like Hong Kong, although losing money, still added value to the network.
An inside source at SAA, said loss-making routes that could face the axe were Brazzaville, Cotonou and Pointe Noire, while domestically Port Elizabeth and East London also lose money.
"
Full story
Johan
Sep 27, 2016, 10:28 am
#28
Join Date: Dec 2002
Location: Washington, D.C.
Programs: UA Premier 1K: PlAAtinum; DL SM, MM; Marriott Gold; CO Plat Emeritus; NW Plat Emeritus
Posts: 4,776
Sep 27, 2016, 4:42 pm
#30
Join Date: Sep 2016
Programs: SAS Eurobonus, SAA Voyager
Posts: 9
Hi there! Greetings from Norway.
Just curious as to why you guys are so negative on SAA. It's a fantastic African flag carrier, and whilst I appreciate you call these guarantees bailouts, all they seem to be are guarantees that should SAA not service it's debts, then the government will secure them. Pretty much like a lot of EX-IM and trade banks.
I've had fantastic service from your SAA team in UK (I think - flights connected in LHR). I think the alternative to the bailouts would simply be a monopoly by Comair and all other LH flights operated by ME airlines, which I wouldn't think would help create local employment. Perhaps Africa for Norway was right and you guys have enough employment that you don't need an national airline?
Just curious as to why you guys are so negative on SAA. It's a fantastic African flag carrier, and whilst I appreciate you call these guarantees bailouts, all they seem to be are guarantees that should SAA not service it's debts, then the government will secure them. Pretty much like a lot of EX-IM and trade banks.
I've had fantastic service from your SAA team in UK (I think - flights connected in LHR). I think the alternative to the bailouts would simply be a monopoly by Comair and all other LH flights operated by ME airlines, which I wouldn't think would help create local employment. Perhaps Africa for Norway was right and you guys have enough employment that you don't need an national airline?