SAA's financial woes
Oct 7, 2020, 9:00 am
#286
Join Date: Jul 2005
Posts: 1,077
Another Potential Option/Lifeline?
https://www.tourismupdate.co.za/arti...aa-east-africa
Salvation for SAA from East Africa?
Yesterday - by Eugene Goddard
A leaked report presented to local lawmakers outlines how South Africa’s floundering national carrier, SAA, could be salvaged through incorporation into Ethiopian Airlines, Africa’s most successful airline.
The report, compiled by airline industry consultancy, African Aviation Services (AAS), was presented to ANC executives yesterday and is said to make a clear case for promoting the investment appeal of the carrier which is currently under administration.
According to Bloomberg, AAS Chief Executive, Nick Fadugba, lauded the presence of SAA’s footprint in the African market, citing it as the strongest on the continent.
He added that, of the 10 most lucrative routes on the continent, five originated or were found in South Africa.
In addition, of the ten busiest routes on the continent, AAS research showed that six of these were either from or inside South Africa.
The news service quotes Fadugba saying: “There is inherent value in an existing airline which cannot be easily replicated in a new replacement carrier.
“After a thorough analysis, our preferred strategic equity partner for SAA is Ethiopian Airlines.”
CEO of Ethiopian Airlines, Tewolde GebreMariam, has however stated that the carrier would not be interested in inheriting SAA’s debt of R10 billion (US$603m).
Neither would the Addis Ababa-based carrier want to inherit the labour-related entanglements of an airline facing imminent insolvency.
For the time being, there’s been no response from ANC lawmakers after being presented with the report in which Fadugba also said a new investor should not be saddled by SAA’s debt.
"in which Fadugba also said a new investor should not be saddled by SAA’s debt."
Obviously, the crux of the problem....
Salvation for SAA from East Africa?
Yesterday - by Eugene Goddard
A leaked report presented to local lawmakers outlines how South Africa’s floundering national carrier, SAA, could be salvaged through incorporation into Ethiopian Airlines, Africa’s most successful airline.
The report, compiled by airline industry consultancy, African Aviation Services (AAS), was presented to ANC executives yesterday and is said to make a clear case for promoting the investment appeal of the carrier which is currently under administration.
According to Bloomberg, AAS Chief Executive, Nick Fadugba, lauded the presence of SAA’s footprint in the African market, citing it as the strongest on the continent.
He added that, of the 10 most lucrative routes on the continent, five originated or were found in South Africa.
In addition, of the ten busiest routes on the continent, AAS research showed that six of these were either from or inside South Africa.
The news service quotes Fadugba saying: “There is inherent value in an existing airline which cannot be easily replicated in a new replacement carrier.
“After a thorough analysis, our preferred strategic equity partner for SAA is Ethiopian Airlines.”
CEO of Ethiopian Airlines, Tewolde GebreMariam, has however stated that the carrier would not be interested in inheriting SAA’s debt of R10 billion (US$603m).
Neither would the Addis Ababa-based carrier want to inherit the labour-related entanglements of an airline facing imminent insolvency.
For the time being, there’s been no response from ANC lawmakers after being presented with the report in which Fadugba also said a new investor should not be saddled by SAA’s debt.
"in which Fadugba also said a new investor should not be saddled by SAA’s debt."
Obviously, the crux of the problem....
Oct 15, 2020, 12:13 pm
#288
Join Date: May 2020
Location: DXB and JNB
Programs: EK Plat; QR Gold
Posts: 507
Oct 16, 2020, 2:48 am
#289
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,273
Oct 28, 2020, 1:05 pm
#290
Join Date: Jul 2005
Posts: 1,077
Seems like SAA is going to benefit from more largess. DA isn't happy, schoolkids aren't happy.
https://www.tourismupdate.co.za/arti...ive-saa-r105bn
https://www.dailymaverick.co.za/arti...s-mini-budget/
There's an old (possibly urban legend) quote about government spending (albeit in the US Defense Department Context)
"A billion here, a billion there. Pretty soon you're talking about real money."
Gotta keep the bureaucrat's airline going. Shame.
https://www.tourismupdate.co.za/arti...ive-saa-r105bn
https://www.dailymaverick.co.za/arti...s-mini-budget/
There's an old (possibly urban legend) quote about government spending (albeit in the US Defense Department Context)
"A billion here, a billion there. Pretty soon you're talking about real money."
Gotta keep the bureaucrat's airline going. Shame.
Nov 4, 2020, 7:02 am
#291
Join Date: Apr 2010
Location: ORD
Programs: AA, UA, GE
Posts: 5,125
Seems like SAA is going to benefit from more largess. DA isn't happy, schoolkids aren't happy.
https://www.tourismupdate.co.za/arti...ive-saa-r105bn
https://www.dailymaverick.co.za/arti...s-mini-budget/
There's an old (possibly urban legend) quote about government spending (albeit in the US Defense Department Context)
"A billion here, a billion there. Pretty soon you're talking about real money."
Gotta keep the bureaucrat's airline going. Shame.
https://www.tourismupdate.co.za/arti...ive-saa-r105bn
https://www.dailymaverick.co.za/arti...s-mini-budget/
There's an old (possibly urban legend) quote about government spending (albeit in the US Defense Department Context)
"A billion here, a billion there. Pretty soon you're talking about real money."
Gotta keep the bureaucrat's airline going. Shame.
https://www.quotes.net/quote/12623
Nov 5, 2020, 9:06 am
#292
Join Date: Jul 2005
Posts: 1,077
https://www.businesslive.co.za/bd/na...ill-go-to-saa/
Pravin Gordhan categorical that no more money will go to SAA
But questions over start up costs and trading losses remain unanswered
BL PREMIUM
05 November 2020 - 11:43 Carol Paton
Public enterprises minister Pravin Gordhan says that he has been “absolutely categorical” in talks with prospective airline partners that the government will not put any further capital into SAA other than what has been promised in the business rescue plan.
Gordhan and SAA business rescue practitioners briefed parliament’s standing committee on public accounts (Scopa) on Wednesday evening answering a range of questions on the new SAA, but leaving some crucial questions about the restart of operations hanging.
Pravin Gordhan categorical that no more money will go to SAA
But questions over start up costs and trading losses remain unanswered
BL PREMIUM
05 November 2020 - 11:43 Carol Paton
Public enterprises minister Pravin Gordhan says that he has been “absolutely categorical” in talks with prospective airline partners that the government will not put any further capital into SAA other than what has been promised in the business rescue plan.
Gordhan and SAA business rescue practitioners briefed parliament’s standing committee on public accounts (Scopa) on Wednesday evening answering a range of questions on the new SAA, but leaving some crucial questions about the restart of operations hanging.
Dec 2, 2020, 12:53 pm
#293
Join Date: Jul 2005
Posts: 1,077
Comments at the bottom of this article are awesome
https://www.tourismupdate.co.za/arti...idging-finance
SAA seeks bridging finance
Yesterday - by Sarah Robertson
In their latest update to creditors, SAA’s business rescue practitioners (BRPs) say they are trying to raise bridging finance to cover the gap caused by the government’s R10,5bn (€572m) in funding only being expected to be received by the airline in mid-January.
The BRPs say they are actively engaging with various lenders to determine whether bridging funding can be raised between now and January to allow for finalisation of the airline’s restructure and, potentially, for the resumption of operations.
In terms of section 132(3) of the Companies Act 71 of 2008, because the SAA business rescue proceedings have not ended within three months after they started, the BRPs are obliged to prepare a report on the progress of the proceedings and update it at the end of each subsequent month until the end of the proceedings.
The report notes that SAA’s operations remain suspended due to the lack of funding. However, early termination agreements have been signed in respect of all 40 leased aircraft, say the BRPs.
“Final consultations have continued between the Company and various labour bodies to finalise any remaining issues in respect of organisational structures, selection criteria and terms and conditions of employment. These discussions have been concluded with all parties other than the South African Airways Pilots Association (SAAPA) and close-out letters have been issued. Following numerous engagements and negotiations with SAAPA, a deadlock has resulted in the lodging of a dispute with the CCMA on October 31 in respect of the termination of the regulating agreement, new terms and conditions of employment for pilots and new salary structures for pilots,” added the BRPs’ report.
https://www.tourismupdate.co.za/arti...idging-finance
SAA seeks bridging finance
Yesterday - by Sarah Robertson
In their latest update to creditors, SAA’s business rescue practitioners (BRPs) say they are trying to raise bridging finance to cover the gap caused by the government’s R10,5bn (€572m) in funding only being expected to be received by the airline in mid-January.
The BRPs say they are actively engaging with various lenders to determine whether bridging funding can be raised between now and January to allow for finalisation of the airline’s restructure and, potentially, for the resumption of operations.
In terms of section 132(3) of the Companies Act 71 of 2008, because the SAA business rescue proceedings have not ended within three months after they started, the BRPs are obliged to prepare a report on the progress of the proceedings and update it at the end of each subsequent month until the end of the proceedings.
The report notes that SAA’s operations remain suspended due to the lack of funding. However, early termination agreements have been signed in respect of all 40 leased aircraft, say the BRPs.
“Final consultations have continued between the Company and various labour bodies to finalise any remaining issues in respect of organisational structures, selection criteria and terms and conditions of employment. These discussions have been concluded with all parties other than the South African Airways Pilots Association (SAAPA) and close-out letters have been issued. Following numerous engagements and negotiations with SAAPA, a deadlock has resulted in the lodging of a dispute with the CCMA on October 31 in respect of the termination of the regulating agreement, new terms and conditions of employment for pilots and new salary structures for pilots,” added the BRPs’ report.
Dec 4, 2020, 1:14 am
#295
Join Date: May 2020
Location: DXB and JNB
Programs: EK Plat; QR Gold
Posts: 507
Dec 4, 2020, 8:40 am
#296
Join Date: Jul 2005
Posts: 1,077
Maybe that accounts for a few missing planes? Don't know exactly how all of it works. But, I would think they want those planes back as part of the termination.
Dec 8, 2020, 1:26 am
#299
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,273
I personally certainly would not book. Risk is substantial that they won't be operating. And no chance of refunds either.
Comair (BA / Kulula), Safair and Airlink are all safe alternatives
Comair (BA / Kulula), Safair and Airlink are all safe alternatives
Last edited by thijsseh; Dec 9, 2020 at 6:22 am Reason: Spell checker destroyed Airlink