SAA's financial woes
Apr 24, 2020, 2:11 pm
#211
Join Date: May 2009
Location: Bath, UK
Programs: BAEC Silver
Posts: 1,002
Presuming African countries open up this August (and that is a big presumption, I know), I have one leg of a 3 country Africa trip on SA-- JNB-LUN on Aug 8. If SA doesn't resume flying, will be curious to see whether any airline flies the route. Total trip is JFK-JNB on BA via LHR; JNB-LUN on SA; internal flights within Zambia; LUN-EBB on KQ via NBO. And finally EBB-NBO on KQ and hence NBO-EWR on BA via LHR.
Apr 28, 2020, 11:10 am
#213
Join Date: Jul 2005
Posts: 1,077
Just posted
Southern & East African Tourism Update
SAA – ‘a financially viable airline will emerge’
Today 09:50 - by Sarah Robertson
Last week, it looked as though SAA had reached the end of line when its business rescue practitioners (BRPs) were advised that government would not assist the airline with further funding. The BRPs – who said there weren’t sufficient funds to honour salaries beyond April 30 – reacted by extending a collective retrenchment offer to all employees. However, government now claims that a consensus has been reached between it and the unions to ensure that a new financially viable and competitive airline will emerge from the business rescue process.
Public Enterprises Minister, Pravin Gordhan, Minster of Labour and Employment, Thulas Nxesi, and and Minster of Tourism, Mmamoloko Kubayi-Ngubane, met with union leaders about the future of SAA via video conference last week. During the meeting it was decided that a consultative forum be established to advance dialogue and consultation on the process ahead and that there would be a sharing of ideas on how best to ensure the well-being of employees.
“The unions agreed that, in arriving at a solution for SAA, some jobs would be lost and that employees that remain will need to sacrifice some of the unaffordable arrangements that have worsened the airline’s financial position. It has also been agreed that social plans will be developed to cushion the effect of losing jobs on the affected employees,” said the Department of Public Enterprises.
However, the department reiterated to the unions that the government was not in a position to provide more capital to SAA and that there could be no dependence on the fiscus. It also invited SAA labour unions to submit proposals on the restructuring of the national carrier and the future of jobs.
Tourism Update contacted SAA’s BRPs for comment but had not received a response at time of publication.
Southern & East African Tourism Update
SAA – ‘a financially viable airline will emerge’
Today 09:50 - by Sarah Robertson
Last week, it looked as though SAA had reached the end of line when its business rescue practitioners (BRPs) were advised that government would not assist the airline with further funding. The BRPs – who said there weren’t sufficient funds to honour salaries beyond April 30 – reacted by extending a collective retrenchment offer to all employees. However, government now claims that a consensus has been reached between it and the unions to ensure that a new financially viable and competitive airline will emerge from the business rescue process.
Public Enterprises Minister, Pravin Gordhan, Minster of Labour and Employment, Thulas Nxesi, and and Minster of Tourism, Mmamoloko Kubayi-Ngubane, met with union leaders about the future of SAA via video conference last week. During the meeting it was decided that a consultative forum be established to advance dialogue and consultation on the process ahead and that there would be a sharing of ideas on how best to ensure the well-being of employees.
“The unions agreed that, in arriving at a solution for SAA, some jobs would be lost and that employees that remain will need to sacrifice some of the unaffordable arrangements that have worsened the airline’s financial position. It has also been agreed that social plans will be developed to cushion the effect of losing jobs on the affected employees,” said the Department of Public Enterprises.
However, the department reiterated to the unions that the government was not in a position to provide more capital to SAA and that there could be no dependence on the fiscus. It also invited SAA labour unions to submit proposals on the restructuring of the national carrier and the future of jobs.
Tourism Update contacted SAA’s BRPs for comment but had not received a response at time of publication.
Apr 28, 2020, 2:17 pm
#214
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,273
Just posted
Southern & East African Tourism Update
SAA – ‘a financially viable airline will emerge’
Today 09:50 - by Sarah Robertson
Last week, it looked as though SAA had reached the end of line when its business rescue practitioners (BRPs) were advised that government would not assist the airline with further funding. The BRPs – who said there weren’t sufficient funds to honour salaries beyond April 30 – reacted by extending a collective retrenchment offer to all employees. However, government now claims that a consensus has been reached between it and the unions to ensure that a new financially viable and competitive airline will emerge from the business rescue process.
Public Enterprises Minister, Pravin Gordhan, Minster of Labour and Employment, Thulas Nxesi, and and Minster of Tourism, Mmamoloko Kubayi-Ngubane, met with union leaders about the future of SAA via video conference last week. During the meeting it was decided that a consultative forum be established to advance dialogue and consultation on the process ahead and that there would be a sharing of ideas on how best to ensure the well-being of employees.
“The unions agreed that, in arriving at a solution for SAA, some jobs would be lost and that employees that remain will need to sacrifice some of the unaffordable arrangements that have worsened the airline’s financial position. It has also been agreed that social plans will be developed to cushion the effect of losing jobs on the affected employees,” said the Department of Public Enterprises.
However, the department reiterated to the unions that the government was not in a position to provide more capital to SAA and that there could be no dependence on the fiscus. It also invited SAA labour unions to submit proposals on the restructuring of the national carrier and the future of jobs.
Tourism Update contacted SAA’s BRPs for comment but had not received a response at time of publication.
Southern & East African Tourism Update
SAA – ‘a financially viable airline will emerge’
Today 09:50 - by Sarah Robertson
Last week, it looked as though SAA had reached the end of line when its business rescue practitioners (BRPs) were advised that government would not assist the airline with further funding. The BRPs – who said there weren’t sufficient funds to honour salaries beyond April 30 – reacted by extending a collective retrenchment offer to all employees. However, government now claims that a consensus has been reached between it and the unions to ensure that a new financially viable and competitive airline will emerge from the business rescue process.
Public Enterprises Minister, Pravin Gordhan, Minster of Labour and Employment, Thulas Nxesi, and and Minster of Tourism, Mmamoloko Kubayi-Ngubane, met with union leaders about the future of SAA via video conference last week. During the meeting it was decided that a consultative forum be established to advance dialogue and consultation on the process ahead and that there would be a sharing of ideas on how best to ensure the well-being of employees.
“The unions agreed that, in arriving at a solution for SAA, some jobs would be lost and that employees that remain will need to sacrifice some of the unaffordable arrangements that have worsened the airline’s financial position. It has also been agreed that social plans will be developed to cushion the effect of losing jobs on the affected employees,” said the Department of Public Enterprises.
However, the department reiterated to the unions that the government was not in a position to provide more capital to SAA and that there could be no dependence on the fiscus. It also invited SAA labour unions to submit proposals on the restructuring of the national carrier and the future of jobs.
Tourism Update contacted SAA’s BRPs for comment but had not received a response at time of publication.
Dream on
Apr 30, 2020, 4:37 am
#216
Join Date: Feb 2020
Location: BHD/DUB/PTY
Programs: BA Silver / EI Silver
Posts: 419
What are the chances the new airline keeps the South African Airways brand? Similar to what Alitalia – Società Aerea Italiana (New Alitalia) did with Alitalia – Linee Aeree Italiane (Old Alitalia).
Apr 30, 2020, 10:11 am
#217
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
Guess it would allow them to save some money by not having to repaint their aircraft.
In any case, the unions are now emphatically saying there will not be any new airline:
"Numsa (National Union of Metalworkers of SA) has denied that an agreement has been reached to shut down SAA and form a new airline. The union referenced media reports that appeared yesterday (April 29) that the National Transport Movement (NTM) had said a decision to shut down SAA and form a new airline had been reached, following a meeting between SAA unions and Public Enterprises Minister Pravin Gordhan. According to the reports, all SAA employee contracts would be terminated, with government sourcing R2.2bn in funding for severance packages. Current airline staff would then be given preference for employment in the new airline.Numsa took to social media to deny the reports: “NTM is incorrect. There is no agreement on the establishment of a new airline. Labour is engaging on a restructured SAA. A new airline would mean that SAA is liquidated and Numsa and Sacca (south African Cabin Crew Association) do not support that.”
Source
Johan
In any case, the unions are now emphatically saying there will not be any new airline:
"Numsa (National Union of Metalworkers of SA) has denied that an agreement has been reached to shut down SAA and form a new airline. The union referenced media reports that appeared yesterday (April 29) that the National Transport Movement (NTM) had said a decision to shut down SAA and form a new airline had been reached, following a meeting between SAA unions and Public Enterprises Minister Pravin Gordhan. According to the reports, all SAA employee contracts would be terminated, with government sourcing R2.2bn in funding for severance packages. Current airline staff would then be given preference for employment in the new airline.Numsa took to social media to deny the reports: “NTM is incorrect. There is no agreement on the establishment of a new airline. Labour is engaging on a restructured SAA. A new airline would mean that SAA is liquidated and Numsa and Sacca (south African Cabin Crew Association) do not support that.”
Source
Johan
May 4, 2020, 9:40 am
#218
Join Date: Jul 2005
Posts: 1,077
Additional argle bargle....
Southern & East African Tourism Update
RIP SAA. Long live a new national airline?
Yesterday - by Adele Mackenzie
Exactly how will Minister of Public Enterprises, Pravin Gordhan, fund his vision of a new national airline?
This is one of the biggest questions arising after the Department of Public Enterprises (DPE) on Friday (May 1) confirmed the signing a new Leadership Compact with SAA workers toward the eventual creation of a new national airline.
“The challenges facing South African Airways has required the leadership of all stakeholders to rise above the crisis created by both the weaknesses within SAA and COVID-19, and agree on a long-term vision and strategy to mitigate the impact on employees, tourism, the aviation industry more broadly and become a catalyst for economic development and job creation,” read the statement.
“It will not be the old SAA but the beginning of a new journey to a new restructured airline, which will be a proud flagship for South Africa,” it continued, highlighting that the Leadership Compact commits to taking a new approach while “acknowledging that there will be a major performance-based culture change for all leadership, management and employees as the transition to a new airline takes place”.
The statement provides few details on how this would be funded, noting only that the new national carrier will be funded through a variety of options such as strategic equity partners, funders and the sale of non-core assets. It adds that the parties – DPE and unions representing the workers – are still of the view that the state must continue to play a role in the newly structured airline.
No further details on funding could be obtained at the time of publishing as DPE Spokesperson, Richard Mantu, was unavailable for comment.
This lack of clarity has prompted Democratic Alliance (DA) member of Parliament's standing committee on public accounts, Alf Lees, to write to Gordhan requesting the full details of the agreement he had entered into with the unions representing SAA employees.
“The question that all South Africans will be asking is whether or not this deal includes yet more billions of rands in bailouts to keep the bankrupt airline going and whether or not majority ownership of SAA will be transferred to a private equity partner,” he said.
As a result, Lees said the DA would seek a commitment from the ANC government that it would not make any further bailouts to SAA, or provide any further government guarantees or any other form of security to the airline.
Meanwhile, the business rescue practitioners, Les Matuson and Siviwe Dongwana, are “working with the facts at hand” and continuing with the Section 189 restructuring process.
Spokesperson for the BRPs, Louise Brugman, told Tourism Update that two unions – the National Union of Metalworkers of South Africa and the South African Cabin Crew Association – have removed themselves from this process.
“We are still in talks with many other unions, including the National Transport Movement,” she said, pointing out that the 60-day consultation process deadline was Friday, May 8. The deadline for publishing the Business Rescue Plan remains May 30.
Southern & East African Tourism Update
RIP SAA. Long live a new national airline?
Yesterday - by Adele Mackenzie
Exactly how will Minister of Public Enterprises, Pravin Gordhan, fund his vision of a new national airline?
This is one of the biggest questions arising after the Department of Public Enterprises (DPE) on Friday (May 1) confirmed the signing a new Leadership Compact with SAA workers toward the eventual creation of a new national airline.
“The challenges facing South African Airways has required the leadership of all stakeholders to rise above the crisis created by both the weaknesses within SAA and COVID-19, and agree on a long-term vision and strategy to mitigate the impact on employees, tourism, the aviation industry more broadly and become a catalyst for economic development and job creation,” read the statement.
“It will not be the old SAA but the beginning of a new journey to a new restructured airline, which will be a proud flagship for South Africa,” it continued, highlighting that the Leadership Compact commits to taking a new approach while “acknowledging that there will be a major performance-based culture change for all leadership, management and employees as the transition to a new airline takes place”.
The statement provides few details on how this would be funded, noting only that the new national carrier will be funded through a variety of options such as strategic equity partners, funders and the sale of non-core assets. It adds that the parties – DPE and unions representing the workers – are still of the view that the state must continue to play a role in the newly structured airline.
No further details on funding could be obtained at the time of publishing as DPE Spokesperson, Richard Mantu, was unavailable for comment.
This lack of clarity has prompted Democratic Alliance (DA) member of Parliament's standing committee on public accounts, Alf Lees, to write to Gordhan requesting the full details of the agreement he had entered into with the unions representing SAA employees.
“The question that all South Africans will be asking is whether or not this deal includes yet more billions of rands in bailouts to keep the bankrupt airline going and whether or not majority ownership of SAA will be transferred to a private equity partner,” he said.
As a result, Lees said the DA would seek a commitment from the ANC government that it would not make any further bailouts to SAA, or provide any further government guarantees or any other form of security to the airline.
Meanwhile, the business rescue practitioners, Les Matuson and Siviwe Dongwana, are “working with the facts at hand” and continuing with the Section 189 restructuring process.
Spokesperson for the BRPs, Louise Brugman, told Tourism Update that two unions – the National Union of Metalworkers of South Africa and the South African Cabin Crew Association – have removed themselves from this process.
“We are still in talks with many other unions, including the National Transport Movement,” she said, pointing out that the 60-day consultation process deadline was Friday, May 8. The deadline for publishing the Business Rescue Plan remains May 30.
May 9, 2020, 1:39 pm
#222
Join Date: Apr 2008
Posts: 220
May 10, 2020, 10:53 am
#223
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467
May 11, 2020, 3:43 am
#224
Join Date: May 2009
Location: Bath, UK
Programs: BAEC Silver
Posts: 1,002
Unless of course the paint company owner was a relative of someone in government, then all the planes would need repainting, payment would be made upfront and no work would ever be done!
May 11, 2020, 4:01 am
#225
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,273
Jeepers, this is an insolvent company. Has been so for years. Do the inevitable and close it down. Will cost the taxpayer (including myself) a lot of money to unwind all the leases, but get it over with. Pay the employees the retrenchment benefits that are due to them. Everything as per the rules and laws and above board. Then move on.
To think you can start a new airline especially in the current environment where a lot of existing airlines are going out of business, is naive in the extreme. Sure, it's going to hurt. But it's the only way. There is no 'business rescue' possible. Deal with it.
To think you can start a new airline especially in the current environment where a lot of existing airlines are going out of business, is naive in the extreme. Sure, it's going to hurt. But it's the only way. There is no 'business rescue' possible. Deal with it.