SAA's financial woes
#166
Join Date: Oct 2010
Location: SEA/ORD/ADB
Programs: TK ELPL (*G), AS 100K (OWE), BA Gold (OWE), Hyatt Globalist, Hilton Diamond, Marriott Plat, IHG Plat
Posts: 7,763
SA published the schedule change to partners today.
UA was a class act in helping reaccommodate me - I was originally flying GRU-JNB-ADD-XXX, and UA opened up I class inventory on GRU-EWR-LHR inventory so I can fly GRU-EWR-LHR-ADD-XXX instead.
UA was a class act in helping reaccommodate me - I was originally flying GRU-JNB-ADD-XXX, and UA opened up I class inventory on GRU-EWR-LHR inventory so I can fly GRU-EWR-LHR-ADD-XXX instead.
#167
Join Date: Mar 2016
Programs: AC SE
Posts: 1,497
And now there is talk about SAA selling its Heathrow slots to raise some extra money: https://www.bloomberg.com/news/artic...to-raise-funds
#168
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,251
And now there is talk about SAA selling its Heathrow slots to raise some extra money: https://www.bloomberg.com/news/artic...to-raise-funds
Undoubtedly selling a slot pair raises a lot of cash for SAA, but it is exceedingly difficult to get one back as they are seldom for sale (and if they are, the price is sky high). So if they sell one, they kill one LHR rotation more or less forever.
Of course the whole issue may be moot if the airline goes bang in the end. At least then they can sell both pairs to raise some cash to pay off a few creditors....
#169
Join Date: Mar 2016
Programs: AC SE
Posts: 1,497
Yes, they 'owned' three slot pairs, but when they discontinued the CPT/LHR/CPT route, they sold one.
Undoubtedly selling a slot pair raises a lot of cash for SAA, but it is exceedingly difficult to get one back as they are seldom for sale (and if they are, the price is sky high). So if they sell one, they kill one LHR rotation more or less forever.
Of course the whole issue may be moot if the airline goes bang in the end. At least then they can sell both pairs to raise some cash to pay off a few creditors....
Undoubtedly selling a slot pair raises a lot of cash for SAA, but it is exceedingly difficult to get one back as they are seldom for sale (and if they are, the price is sky high). So if they sell one, they kill one LHR rotation more or less forever.
Of course the whole issue may be moot if the airline goes bang in the end. At least then they can sell both pairs to raise some cash to pay off a few creditors....
#170
Join Date: Jan 2011
Location: YVR to SEA
Posts: 2,527
They ended twice daily only two years ago
http://www.travelweekly.co.uk/articl...nnesburg-route
Cape town LHR ended 2012
https://centreforaviation.com/analys...d-beyond-75711
http://www.travelweekly.co.uk/articl...nnesburg-route
Cape town LHR ended 2012
https://centreforaviation.com/analys...d-beyond-75711
#171
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,251
They ended twice daily only two years ago
http://www.travelweekly.co.uk/articl...nnesburg-route
Cape town LHR ended 2012
https://centreforaviation.com/analys...d-beyond-75711
http://www.travelweekly.co.uk/articl...nnesburg-route
Cape town LHR ended 2012
https://centreforaviation.com/analys...d-beyond-75711
When they ditched that and made the Voyager programme basically worthless for me (not necessarily for everyone, but certainly for me when the AMEX benefits were seriously cut at more or less the same time). I ditched SAA. Now a very satisfied EK 'addict'.
#172
Join Date: Dec 2002
Posts: 7,978
JNB-GRU in March is still for sale on the SA site.
#173
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467
I was once (almost) a regular on CPT/LHR. It was almost always packed in Y and J, so how they could not make money on that route escapes me.
When they ditched that and made the Voyager programme basically worthless for me (not necessarily for everyone, but certainly for me when the AMEX benefits were seriously cut at more or less the same time). I ditched SAA. Now a very satisfied EK 'addict'.
When they ditched that and made the Voyager programme basically worthless for me (not necessarily for everyone, but certainly for me when the AMEX benefits were seriously cut at more or less the same time). I ditched SAA. Now a very satisfied EK 'addict'.
It was also mooted that for the ANC a welcome political side effect of closing CPT as a European destination would be to do damage to tourism for the Cape - and hence be a blow to the DA government of the province. That seems pretty far fetched to me, but who knows...
I wonder if it would have made sense to fly to Gatwick. Not a *A hub and far fewer possibiliities for connecting traffic but isn't London sustainable on an O&D basis?
#174
Join Date: Dec 2010
Location: N/A
Programs: UA 1K, BA Gold, LH/SN/LX Senator
Posts: 449
I highly doubt they ever lost money on that route. Those excellent loads were achieved despite fares that they would have killed for on other routes. It seemed obvious to me at the time that they were selling the family silver because they were desperate for short-term financial gains regardless of the long-term cost.
SAA have not used LHR for connections with the exception of AC and some UA for many years. The UK APD and visa rules made it useless for connections to Europe and Shengen area and they pushed their own North American traffic through JFK and IAD. It's a much higher cost option than their other hubs.
#175
Join Date: Jan 2012
Programs: BA Silver, ANA Mileage Club
Posts: 155
And now there is talk about SAA selling its Heathrow slots to raise some extra money: https://www.bloomberg.com/news/artic...to-raise-funds
I really hope they don't do it soon... I fly next Wednesday (26th) JNB - LHR overnight! If not they have to rebook me on LX? YES PLEASE
#177
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,251
CAPA did some analysis when SAA closed the route and showed that SAA's yields on CPT-LHR-CPT was half that of JNB-PER-JNB and a third less than JNB-LOS-JNB, JNB-ACC-JNB and JNB-BOM-JNB. Given how BOM particularly was burning money it's hard to see that CPT-LHR-CPT was a money spinner given, especially when taking into account the UK APD and aircraft ground time at LHR.
SAA have not used LHR for connections with the exception of AC and some UA for many years. The UK APD and visa rules made it useless for connections to Europe and Shengen area and they pushed their own North American traffic through JFK and IAD. It's a much higher cost option than their other hubs.
SAA have not used LHR for connections with the exception of AC and some UA for many years. The UK APD and visa rules made it useless for connections to Europe and Shengen area and they pushed their own North American traffic through JFK and IAD. It's a much higher cost option than their other hubs.
#178
FlyerTalk Evangelist
Join Date: Apr 2001
Location: MEL CHC
Posts: 20,920
Visa rules yes, but I don't see how APD has anything to do with this. APD is just a (quite hight) 'airport tax', and is even higher when travelling in any cabin higher than the cheapest (i.e. premium economy attracts the same level of APD as first class). It is charged directly by the airline to the passenger. And there is no APD on connections, ensuring that travel to other European countries (and non-European ones for that matter) is not affected by this.
#179
Join Date: May 2013
Posts: 6,349
Nationwide did Gatwick and finished quite quickly? Then again SAA hasn't reached the point of engines falling off...
#180
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467