SAA's financial woes
#181
Join Date: Dec 2010
Location: N/A
Programs: UA 1K, BA Gold, LH/SN/LX Senator
Posts: 449
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.
#182
Join Date: Dec 2002
Posts: 8,005
Title of the article above missing another big change - cancellations of several international routesOn February 29, 2020, SAA will also close the regional and international services from Johannesburg to Abidjan via Accra, Entebbe, Guangzhou, Hong Kong, Luanda, Munich, Ndola, and Sao Paulo.
SAA will continue to operate all international services between Johannesburg and Frankfurt, London Heathrow, New York, Perth and Washington via Accra.
SAA will continue to operate all international services between Johannesburg and Frankfurt, London Heathrow, New York, Perth and Washington via Accra.
#183
Join Date: Jul 2012
Posts: 500
#185
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 48,187
Because the potential routes are usually not worth the effort and only increase cost (crew, additional MRO, cost to operate stations etc)
#186
Join Date: Mar 2016
Programs: AC SE
Posts: 1,506
You’ve got to wonder how SAA is going to weather the coronavirus storm. While I don’t think the virus has made much of an appearance in sub-Saharan African yet, surely SAA is still feeling the pain, like all the other airlines, as people cancel or postpone travel. For airlines that are already on the brink of disaster, even a 10% or 20% loss of passengers could be devastating.
#187
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467
You’ve got to wonder how SAA is going to weather the coronavirus storm. While I don’t think the virus has made much of an appearance in sub-Saharan African yet, surely SAA is still feeling the pain, like all the other airlines, as people cancel or postpone travel. For airlines that are already on the brink of disaster, even a 10% or 20% loss of passengers could be devastating.
I see they are offering very deeply discounted Voyager “SaverBlitz” reward bookings until end April. Good move - at least they might rake in all those fees on what would otherwise be zero-paid empty seats.
#188
Join Date: Dec 2010
Location: N/A
Programs: UA 1K, BA Gold, LH/SN/LX Senator
Posts: 449
Agreed, horrible timing. ACSA have already made statements that passengers numbers are down at all their airports. The only silver lining for SAA is that they started cutting capacity for altogether different reasons well before anyone else so they might be a little ahead of the curve. Also, now some competitors who wouldn't have otherwise cut capacity will.
#189
Join Date: Jul 2005
Posts: 1,077
For your consideration. As one might say...
https://www.thesouthafrican.com/news...s-benefitting/
"Can you believe it? Coronavirus outbreak may actually benefit SAA"
Every cloud has a silver lining, we suppose. There have been very few crumbs of comfort for South African Airways (SAA) over the past few months, but the airline has parasitcally through bailouts and loans from the state. So it’s perhaps fitting that something like the coronavirus is capable of giving the SOE a boost.
Coronavirus may be good news for SAA
In a frankly incredible turn of events, Siviwe Dongwana – one of the two business practitioners in charge of saving SAA – has told Bloomberg that the spread of COVID-19 has had a positive impact on their operations:
“The coronavirus issues and the impact on the industry means that a lot more lessors are going to find themselves with a lot of aircraft. At a risk of being too much of an optimist that’s a silver lining for our renegotiation of aircraft…. We need to deal with everything now to cleanse the airline of sins of the past.”
Siviwe Dongwana on the coronavirus impact
How SAA can benefit from coronavirus
As international markets and businesses head into a nosedive, it’s likely that South Africa’s domestic carrier will suddenly be in a stronger position to renegotiate key deals. Their newly-found ‘perks’ include the following:
Oil prices have slumped below the $30-per-barrel mark, dramatically reducing SAA’s fuel costs.
International flights are the most costly to the ailing airline, but with these slashed, overheads have dropped.
Overseas hub in London and the US are now being used less, meaning SAA aren’t paying for higher landing fees either.
All of these factors, plus a few other minor drawbacks, is actually saving the SOE a considerable amount of money.
https://www.thesouthafrican.com/news...s-benefitting/
"Can you believe it? Coronavirus outbreak may actually benefit SAA"
Every cloud has a silver lining, we suppose. There have been very few crumbs of comfort for South African Airways (SAA) over the past few months, but the airline has parasitcally through bailouts and loans from the state. So it’s perhaps fitting that something like the coronavirus is capable of giving the SOE a boost.
Coronavirus may be good news for SAA
In a frankly incredible turn of events, Siviwe Dongwana – one of the two business practitioners in charge of saving SAA – has told Bloomberg that the spread of COVID-19 has had a positive impact on their operations:
“The coronavirus issues and the impact on the industry means that a lot more lessors are going to find themselves with a lot of aircraft. At a risk of being too much of an optimist that’s a silver lining for our renegotiation of aircraft…. We need to deal with everything now to cleanse the airline of sins of the past.”
Siviwe Dongwana on the coronavirus impact
How SAA can benefit from coronavirus
As international markets and businesses head into a nosedive, it’s likely that South Africa’s domestic carrier will suddenly be in a stronger position to renegotiate key deals. Their newly-found ‘perks’ include the following:
Oil prices have slumped below the $30-per-barrel mark, dramatically reducing SAA’s fuel costs.
International flights are the most costly to the ailing airline, but with these slashed, overheads have dropped.
Overseas hub in London and the US are now being used less, meaning SAA aren’t paying for higher landing fees either.
All of these factors, plus a few other minor drawbacks, is actually saving the SOE a considerable amount of money.
#190
Join Date: May 2010
Location: Oxon, UK
Programs: Mucci des canapes, Skywards Gold, BAEC, IC Plat Amb, LH FTV
Posts: 1,952
Trying to cancel flights on Airlink for April (booked last year through SAA). I am unable to cancel these online despite their being a link to do so (all other booking management functions work). Filling out the request and submitting just brings me back to the cancellation page. IT problems or an indication that SAA are not refunding cancellations?
#192
Join Date: Apr 2008
Posts: 220
Trying to cancel flights on Airlink for April (booked last year through SAA). I am unable to cancel these online despite their being a link to do so (all other booking management functions work). Filling out the request and submitting just brings me back to the cancellation page. IT problems or an indication that SAA are not refunding cancellations?
#193
Join Date: May 2010
Location: Oxon, UK
Programs: Mucci des canapes, Skywards Gold, BAEC, IC Plat Amb, LH FTV
Posts: 1,952
I’m not surprised and have already decided that the sum involved does not justify hours on the phone at the moment - there are many trying to sort out essential travel who need to Have priority.
#195
Join Date: Mar 2017
Location: Singapore & Globe trotting
Programs: QR Gold, ITA Club Executive, Hilton Gold, GHA Titanium, Taj Gold, Accor Gold, Marriott Gold Elite
Posts: 425
Trying to cancel flights on Airlink for April (booked last year through SAA). I am unable to cancel these online despite their being a link to do so (all other booking management functions work). Filling out the request and submitting just brings me back to the cancellation page. IT problems or an indication that SAA are not refunding cancellations?