SAA's financial woes
Mar 11, 2021, 7:10 am
#316
Join Date: Jun 2009
Location: Teaneck, NJ
Programs: AA L.T. Plat; UA Platinum
Posts: 328
While not South Africa, I shot a wonderful photo on the Kenya side of the Kenya-Tanzania border in the trans-border cargo clearance yard. "This is A No Corruption Zone. Report all bribes and corruption to ....." With my driver haven been shaken down by rangers for US $200 in Lake Nakuru Natl Park, kind of makes me wonder when I see articles about corruption investigation.
Mar 11, 2021, 7:22 am
#317
Join Date: Apr 2010
Location: ORD
Programs: AA, UA, GE
Posts: 5,123
While not South Africa, I shot a wonderful photo on the Kenya side of the Kenya-Tanzania border in the trans-border cargo clearance yard. "This is A No Corruption Zone. Report all bribes and corruption to ....." With my driver haven been shaken down by rangers for US $200 in Lake Nakuru Natl Park, kind of makes me wonder when I see articles about corruption investigation.
Mar 11, 2021, 10:47 am
#318
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
R30,5m poured into SAA corruption investigation
"DA Scopa member, Alf Lees... added that it was concerning that many of the people who had clearly been involved in the looting were currently being paid massive severance packages. He asked if there was any way the SIU could speed the process up to identify the looters before they were paid out in full from the Business Rescue plan’s budget."
Source
Source
Mar 12, 2021, 2:05 pm
#319
Join Date: Jul 2005
Posts: 1,077
"DA Scopa member, Alf Lees... added that it was concerning that many of the people who had clearly been involved in the looting were currently being paid massive severance packages. He asked if there was any way the SIU could speed the process up to identify the looters before they were paid out in full from the Business Rescue plan’s budget."
Source
Source
Business Day had a little bit more. Everyone is squawking (rightfully) over the cash that could be poured into SAA v. schools, shots in arms, etc. It's a waste of money to dump taxpayers cash into SAA at this point.
Mar 19, 2021, 9:19 am
#320
Join Date: Jul 2005
Posts: 1,077
https://www.reuters.com/article/safr...-idUSL8N2LH0ZT
UPDATE 1-South African Airways administrators hope to exit by month-end
By Reuters Staff
2 Min Read
(Adds detail, context)
JOHANNESBURG, March 19 (Reuters) - The administrators of South African Airways (SAA) hope to hand control of the business back to management by the end of the month, the state-owned airline said in a letter to affected parties seen by Reuters.
SAA has been under a form of bankruptcy protection since December 2019, and its fortunes worsened during the COVID-19 pandemic. All operations were mothballed in September 2020 when funds ran low.
The letter, dated March 18, said SAA’s board of directors and management were working on a plan to resume flights, without giving a date when that might happen.
The administrators said they had received 7.8 billion rand ($529 million) out of a 10.5 billion rand bailout allocated in the government’s October mid-term budget.
Out of that, around 360 million rand has gone towards paying unpaid salaries, 1.5 billion rand has been spent on severance packages and 400 million rand has been transferred to creditors who lent money after the airline entered administration.
Other funds are earmarked for working capital when SAA restarts operations and to pay for passengers who have already paid for tickets but not yet flown.
Once further payments to creditors and employees have been made or provided for and a receivership set up, the administrators can relinquish control of the business.
The administrators said SAA’s debt had fallen by 35.7 billion rand since they took over and that its workforce had been cut from 4,700 to roughly 1,000.
UPDATE 1-South African Airways administrators hope to exit by month-end
By Reuters Staff
2 Min Read
(Adds detail, context)
JOHANNESBURG, March 19 (Reuters) - The administrators of South African Airways (SAA) hope to hand control of the business back to management by the end of the month, the state-owned airline said in a letter to affected parties seen by Reuters.
SAA has been under a form of bankruptcy protection since December 2019, and its fortunes worsened during the COVID-19 pandemic. All operations were mothballed in September 2020 when funds ran low.
The letter, dated March 18, said SAA’s board of directors and management were working on a plan to resume flights, without giving a date when that might happen.
The administrators said they had received 7.8 billion rand ($529 million) out of a 10.5 billion rand bailout allocated in the government’s October mid-term budget.
Out of that, around 360 million rand has gone towards paying unpaid salaries, 1.5 billion rand has been spent on severance packages and 400 million rand has been transferred to creditors who lent money after the airline entered administration.
Other funds are earmarked for working capital when SAA restarts operations and to pay for passengers who have already paid for tickets but not yet flown.
Once further payments to creditors and employees have been made or provided for and a receivership set up, the administrators can relinquish control of the business.
The administrators said SAA’s debt had fallen by 35.7 billion rand since they took over and that its workforce had been cut from 4,700 to roughly 1,000.
Mar 31, 2021, 12:58 pm
#321
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
Here we go again
"As SAA’s business rescue process winds to a close, many South Africans, from aviation professionals to consumers, question why the government continues to throw billions more taxpayers’ rands at the beleaguered entity. Independent BRP and Aviation Economist, Dr Joachim Vermooten ... says the business rescue goals have not been met and that SAA is not solvent, liquid or even operational."
Source
Johan
Source
Johan
Apr 12, 2021, 6:02 pm
#322
Join Date: Sep 2008
Location: SF Bay Area
Programs: None - previously UA
Posts: 4,867
Seems like they are not going to exit anytime soon.
https://www.ifalpa.org/mutual-assist...ca-saa-pilots/
https://www.ifalpa.org/mutual-assist...ca-saa-pilots/
Apr 15, 2021, 1:20 pm
#323
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
"SAA has sent out an internal notice, informing employees that Thomas Kgokolo has assumed the position of interim CEO. The Interim Board of Directors at the airline made the appointment with effect from April 13."
Source
Source
Apr 23, 2021, 1:37 pm
#325
Join Date: Apr 2010
Location: ORD
Programs: AA, UA, GE
Posts: 5,123
"Mango is preparing to be placed in business rescue, as it will have no aircraft available for operations from May 1."
Source
Johan
Source
Johan
Apr 30, 2021, 3:25 pm
#326
Join Date: Jul 2005
Posts: 1,077
Daily Maverick weighs in
https://www.dailymaverick.co.za/arti...nt-and-liquid/
"Of the approved funding for SAA by the government, the rescue practitioners said, to date, the airline had received R7.8-billion for implementation of the business rescue plan..."
And, they're still spending the Treasury's cash.
https://www.dailymaverick.co.za/arti...nt-and-liquid/
"Of the approved funding for SAA by the government, the rescue practitioners said, to date, the airline had received R7.8-billion for implementation of the business rescue plan..."
And, they're still spending the Treasury's cash.
May 2, 2021, 9:21 pm
#327
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
Daily Maverick weighs in
https://www.dailymaverick.co.za/arti...nt-and-liquid/
"Of the approved funding for SAA by the government, the rescue practitioners said, to date, the airline had received R7.8-billion for implementation of the business rescue plan..."
And, they're still spending the Treasury's cash.
https://www.dailymaverick.co.za/arti...nt-and-liquid/
"Of the approved funding for SAA by the government, the rescue practitioners said, to date, the airline had received R7.8-billion for implementation of the business rescue plan..."
And, they're still spending the Treasury's cash.
May 3, 2021, 2:13 am
#328
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,273
Daily Maverick weighs in
https://www.dailymaverick.co.za/arti...nt-and-liquid/
"Of the approved funding for SAA by the government, the rescue practitioners said, to date, the airline had received R7.8-billion for implementation of the business rescue plan..."
And, they're still spending the Treasury's cash.
https://www.dailymaverick.co.za/arti...nt-and-liquid/
"Of the approved funding for SAA by the government, the rescue practitioners said, to date, the airline had received R7.8-billion for implementation of the business rescue plan..."
And, they're still spending the Treasury's cash.
May 3, 2021, 6:53 pm
#329
Join Date: Mar 2018
Location: EDI/GLA
Programs: DL 2 MM Unobtainum | UA 1.1MM Gold | MR Bonvoy Titanium
Posts: 2,272
SAA to exit "Business Rescue".
https://www.reuters.com/world/africa...hs-2021-05-01/
May 4, 2021, 1:55 am
#330
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,273
Indeed and I hope that the South African Government installs a new Board of Directors and Management Team with this revitalization. They've been corrupt far too long with unscrupulous opportunists that bled the company dry with mismanagement and poor decision making after several bailouts by the state.
SAA to exit "Business Rescue".
https://www.reuters.com/world/africa...hs-2021-05-01/
SAA to exit "Business Rescue".
https://www.reuters.com/world/africa...hs-2021-05-01/
Sorry to be a cynic, but what makes you believe that any new Board or Management Team appointed by the SA Government will be less corrupt that any of the previous incumbents? Corruption unfortunately is endemic in government circles in SA.