MT_Switch

As first posted by thijsseh here, SAA is going into business rescue. Just making a separate thread so that it is easier to see on the forum list and be informed. Mods can do their magic to edit, merge, etc.

Source:

https://www.fin24.com/Companies/Trav...today-20191205

Cheetah_SA

Final rearrangement of the deckchairs?

thijsseh

I guess it all depends on who is appointed as the 'business rescue practitioner'..
The article says that SAA needs 'radical restructuring'. This is not news, we have known this for quite a few years. I guess the shareholder (i.e. the government) is trying to get someone else to do the inevitable fight with the unions. This practitioner will need b*&&s. Can a restructuring be radical enough to return the airline to profitably? I can't say if it does or not. But this country does not need nor can afford a state run airline which needs ongoing financial support. That much is clear!

In the end closing up shop will also cost an enormous amount (think of the outstanding leases on most of the fleet).
But it might be better than continuing to pour money down this drain. This country has other priorities: https://www.news24.com/Columnists/Me...itise-20191204

Onestep

Does anybody have any sense of which routes will be rationalised or dropped over the coming weeks?

I have travel in February through HK and suspect that route may now not be reinstated. i was fortunate to have purchased travel insurance (including insolvency cover!) a few days before TIC stopped selling it 😀

shipcamein

I'm planning a trip for late 2020 from the USA to South Africa. Most of the "partner airlines" end up on South African Airlines sooner or later - but that particular airline is on thin ice right now. I have questions.

I'm a total rookie at this, please be gentle! (Not a rookie at traveling - just at Africa and dealing with shaky airlines.)

1. If I book using points or miles on a "partner" airline - that is operated by SAA for a portion - and then SAA folds up - what will happen?
2. What other airline choices do I have for Johannesburg or Cape Town?
3. Looks like anyone's guess right now - but what are the odds of SAA staying viable? (Just wondering if anyone had any insight beyond what the news tells me.)

Thanks for any help, always appreciate the advice.

GetSetJetSet

In the next few months (late Jan/early Feb) I will super advance book my NYE ‘20-‘21 trip. I was planning to book the SAA direct JFK-JNB on the way in. How dire is the situation? Will SAA exist by late ‘20 or should I book with a more stable carrier?

Stewie Mac

SAA actually has its own forum so I'll maybe suggest to the mods that they move this question there.

1. I have no clue, and suspect that it will vary considerably from partner to partner, between giving you the miles back and washing their hands of it, through to rebooking you on alternatives.
2. Do you mean between JNB and CPT, or reaching them from elsewhere? Without knowing where you're starting, that's a tricky one to answer, but generally between JNB and CPT (and internally in ZA) you also have British Airways as full service, plus Kulula, Mango and flysafair as lo-cost options. I have flown on all four in the past, no problems with any of them. Mango is the low-cost arm of SAA, so there is a slight risk that the fallout from SAA will also take in Mango, but my understanding is that a) it's pretty separate and b) actually making money, so may survive.
If you're talking about getting to JNB or CPT, then the Star Alliance alternatives are Ethiopian, Turkish, Swiss or Lufthansa (plus also maybe Egyptian but I personally don't consider them as I like a glass of wine). IIRC United are/will launch a direct East Coast-CPT route.
3. I don't think that anyone who can speak publicly knows more than the news right now. I'm flying home SAA on Thursday, because I don't think that the 'business rescuer' will be able to make any decisions in the next few weeks, but I certainly wouldn't be looking to book them months out, or in late 2020.

There are several threads in the SAA forum detailing the current woes.

shipcamein

Stewie, thanks for the great info - my apologies for the confusion, i just blew right past SAA in the list, saw "african" down below, and here we are! Sorry 'bout that...will read there to catch up on the situation.

Yes - I meant TO JNB or CPT from other parts of the world - no worries "locally" in South Africa - I did not realize that Ethiopian, Turkish, Swiss and Lufthansa all flew there - that's exactly why I posted - Thank you!

Unionruler

Doubt they will still be operating US flights. A business rescue plan would probably involve shrinking to regional ops.

evanb

Why do you think regional ops would shrink? It's the regional ops that are the most profitable.

RCyyz

Read again. Unionruler says that the rescue plan will likely focus on shrinking the airline to a regional one.

RCyyz

It's probably too early to tell. The rescue plan will take at least a few days to get going. It would be reasonable to assume that the international routes will be amongst the first to go. Hopefully the disruption to people's travel plans will be minimal but undoubtedly, some less-prepared travellers will end up getting stranded somewhere.

GetSetJetSet

So you think it's best to avoid JFK/IAD-JNB for late Dec. 2020? Things are that dire?

wfiring12

Things at SAA have been dire for some time, but this time appears a bit more so. That said, it's impossible to say where things will stand a year out. As someone who flies from the US to Southern Africa quite often, I prefer one of the European carriers over flying SAA 'non-stop' from JFK or IAD. Or even DL from ATL. If you want to fly *A, consider LH or LX as I'm doing this week from LAX to JNB. If you have regional flights, you might want to consider SA Airlink if possible or another carrier.

PVDtoDEL

Another option is to book your SA ticket plated on a more solvent carrier's ticket stock. For example, united.com will sell most SAA flights, and if SAA were to go bankrupt, UA would be responsible for rebooking you.