SA to drop unprofitable Asian routes

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Old Dec 10, 14, 4:53 am
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Exclamation SA to drop unprofitable Asian routes

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Bang goes Beijing, Hong Kong and Mumbai!

I always thought that cargo supported HKG at least.
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Old Dec 11, 14, 2:01 am
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Originally Posted by Cheetah_SA View Post
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Bang goes Beijing, Hong Kong and Mumbai!

I always thought that cargo supported HKG at least.
It's really too bad they couldn't make these routes work. I like flying SA much more than ET. TK is good but connections in IST to ZA are too long. It doesn't say when the routes are getting cancelled, I'd imagine they have to fly them for some time still, I'm due on HKG-JNB and v.v. at the end of this month and beginning of January, really not sure what I'll do if they cancel it before then.
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Old Dec 11, 14, 7:04 am
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Well with the new Etihad partnership everything is going to start getting funneled through Abu Dhabi. SAA announced the first daily from JNB to AUH from March 2015. They are likely to drop Mumbai and Beijing in March. I suspect they will give Hong Kong every chance to survive. It has been SAA's most important Asian route for 20 years and they can probably make it work. But the build-up in Abu Dhabi over time might result in some other cuts, or maybe even routing some routes through Abu Dhabi (maybe some European or Hong Kong).
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Old Dec 11, 14, 9:33 pm
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Originally Posted by evanb View Post
Well with the new Etihad partnership everything is going to start getting funneled through Abu Dhabi. SAA announced the first daily from JNB to AUH from March 2015. They are likely to drop Mumbai and Beijing in March. I suspect they will give Hong Kong every chance to survive. It has been SAA's most important Asian route for 20 years and they can probably make it work. But the build-up in Abu Dhabi over time might result in some other cuts, or maybe even routing some routes through Abu Dhabi (maybe some European or Hong Kong).
I suppose if they do drop PEK and leave HKG then they'll route people from the mainland to HKG to connect, they already do that from PVG now so perhaps it'll help out. I thought sales of the C cabin were not bad, but a problem is the eco fares from Mainland China are very low and seem to never sell out (Usually see L fares available, Q at highest). Having said that I don't know they'll really be able to charge any more because QR and EK dump a lot of cheap inventory on China to anywhere in Africa, ME, or Europe.
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Old Dec 11, 14, 11:44 pm
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EY could be a good move for SAA, their current acquisition strategy makes SA a prime target. I also think govt has been warming to the idea especially considering how all of a sudden they are querying the EK bilaterals.

As a rule when EY buys a minority stake they insist on placing the CEO, and very shortly thereafter its quite obvious that despite the minority interest they are in control
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Old Dec 12, 14, 2:13 am
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Originally Posted by SAWorldVoyager View Post
As a rule when EY buys a minority stake they insist on placing the CEO, and very shortly thereafter its quite obvious that despite the minority interest they are in control
EY holds a minority stake in the following airlines:

Aer Lingus (4.11%)
Air Berlin (29%)
Air Serbia (49%)
Air Seychelles (40%)
Alitalia (49%)
Darwin Airline (33.3%)
Jet Airways (24%)
Virgin Australia (22.9%)


Etihad has certainly has not "insisted on placing the CEO" in all of these airlines - so there is no such rule. (Such a rule would be unenforceable without a controlling share, anyway, as the other shareholders could vote them down).

Also, they are being investigated by the European Commission with regard to their holdings in Air Berlin, Air Serbia and Darwin Airline (despite recently having received clearance for their 49% stake in Alitalia) and whether they are, in fact, the de-facto controllers of these airlines. Current EU law prevents non-European entities from holding a controlling share in an EU carrier. They cannot, by law, be in control of many of their investments.

I have no idea what South African law states, or indeed, what size of an investment EY may be interested in. But it's a jump to say that Etihad will appoint a CEO and take control of the airline.

Last edited by irishguy28; Dec 12, 14 at 2:27 am
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Old Dec 12, 14, 2:52 am
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Treasury to take over SAA

"“Working with the relevant ministries, the SAA will be transferred from the Department of Public Enterprises to the National Treasury. The Presidency will closely monitor the implementation of the turnaround plans” said Minister Radebe.

At a media briefing last week Bezuidenhout said the first and most critical step of the rescue plan was to address the airline’s liquidity position, on-going solvency and medium-term funding requirements. SAA is relying on state-guaranteed loans and requires an extension of the guarantee by government. This includes the immediate review and reconfiguration of loss-making routes such as Beijing, Hong Kong and Mumbai. The airline recently strengthened ties with Star Alliance partner, Air China, which – within the next few months – will see more points through which SAA can service the Chinese market.

With regard to an equity partner, Bezuidenhout said what the company needed was not a purist equity partner but a strategic one that could not only offer a capital injection into the business but also come to the table with management skills and expertise to help put SAA back on track. “Etihad is well known to take minority stakes in various entities and that option would be available to Etihad,” Bezuidenhout said. He added that he would not want to talk on Etihad’s behalf of intent expressed but that the airlines were looking to strengthen their commercial ties.
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Old Dec 12, 14, 2:56 am
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Originally Posted by SAWorldVoyager View Post
I also think govt has been warming to the idea especially considering how all of a sudden they are querying the EK bilaterals.
That is surely a pure coincidence?

If EY does become involved, I sure hope they keep flying AUH-JNB themselves, and not cede the route to SA.

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Old Dec 12, 14, 7:09 am
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Originally Posted by johan rebel View Post
If EY does become involved, I sure hope they keep flying AUH-JNB themselves, and not cede the route to SA.
From March 2015 both SA and EY will fly daily between JNB and AUH. The schedules have been coordinated. SA will fly daytime JNB-AUH, and overnight AUH-JNB. EY will fly overnight JNB-AUH, and daytime AUH-JNB.
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Old Dec 13, 14, 12:03 am
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What are the SA flight numbers?
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Old Dec 13, 14, 4:28 am
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Originally Posted by Sabasi View Post
What are the SA flight numbers?
Here is the new schedule from 29 March 2015 including both SA and EY flights. there will be bilateral codesharing. The schedule is nicely co-ordinated.

JNB AUH SA 278 10:05 20:25
JNB AUH EY 603 20:30 06:50+1

AUH JNB SA 279 02:05 08:15
AUH JNB EY 604 09:30 16:05
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Old Dec 14, 14, 7:07 am
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Originally Posted by evanb View Post
From March 2015 both SA and EY will fly daily between JNB and AUH. The schedules have been coordinated. SA will fly daytime JNB-AUH, and overnight AUH-JNB. EY will fly overnight JNB-AUH, and daytime AUH-JNB.
That's a relief, as with my current flight pattern to JNB I will still be on EY metal both ways.

On the other hand, I fear that EY pax will henceforth be condemned to the dreadful JNB Baobab Lounge, and at the worst time of day to boot, if they are taking the evening flight.

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Old Dec 14, 14, 7:20 am
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"SAA has reportedly hidden the fact that its losses more than doubled in the 2013/14 financial year from R1.2bn to R2.6bn, reports the Sunday Times.

The newspaper states it has seen a copy of the airline's annual report and financial statements for the last financial year which should have been released in June.

SAA insiders said however, that the information had been "buried" because of board infighting and the reluctance to reveal the extent of the losses.
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Old Dec 14, 14, 1:25 pm
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One London flight could be scrapped plus NO MORE CHAMPAGNE !! A new route to Toronto instead...

http://www.moneyweb.co.za/moneyweb-s...ng-champagne-c
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Old Dec 14, 14, 1:43 pm
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Originally Posted by johan rebel View Post
On the other hand, I fear that EY pax will henceforth be condemned to the dreadful JNB Baobab Lounge, and at the worst time of day to boot, if they are taking the evening flight.
Although, in time, you may see more of an Etihad influence on lounge design and operation.
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