Fate of "New SAA" to be decided soon

Jamie McKane

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Fate of "New SAA" to be decided soon

The fate of South African Airways hangs in the balance ahead of Finance Minister Tito Mboweni's mini-budget speech later this month.

Private banks have refused to provide funding for the bankrupt state airline, and the government is scrambling to find a funding plan that will not take money away from social development programmes, according to a report by the City Press.
 

RVQ

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I would support a minority government ownership if they then also sold off parts of other failing SOEs to fund SAA, essentially moving more SOEs into the Telkom, majority private and minor public ownership model.
 

NarrowBandFtw

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“The banks said they couldn’t give government money for SAA because it would be reckless lending,” they said.

They could lend the money if it was borrowed by the state, but not for SAA because it was bankrupt and its future wasn’t promising.”
f-ing cnts! it's still reckless lending if you lend it to a bankrupt communist regime that will either default or milk the taxpayers dry to pay it back ... but I guess expecting banks to have morals is as realistic as leaving a brick of crack in a crack-den and expecting it to remain untouched
 

Shadowchaser1

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Ex cit. It seems that some people in the banking sector have brains. I can tell you now it's not only R 10 billion they need. After the 1st R 10 billion, already spent, a 2nd of R 10 billion needed, which is needed now. Add an additional R 20 Billion to get it started up and running. These dumb assess still need to pay VSP packages.
 

The Free Radical

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The R10 billion is just to stop the Sheriff kicking down the door and taking the furniture in a forced lender foreclosure.

I sincerely hope SAA folds for good.

Its just a flying mini bus taxi service for bloated salaried MPs and civil servants to vreet and booze up, paid for with our taxes.

Let privateers and the free market take back the airways, so they can compete and lower the cost of travel.

#BOYCOTTSAA
 

Mystic Twilight

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Incoming: South African Airways (Chinese owned through a South African "front" company - to comply with the "Majority SA" shareholder rules)
That's just commonsense.
Actually owning a failed airline would not make sense in any form, there is no advantage to be gained. And its not like china doesnt already have like at least 5 different airlines. China would want things that have value, not just owning things for the sake of owning things, therefore owning the airport on the other hand, that makes sense and offers a big advantage.
 

Sollie

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“We don’t want to deal with the legacy issues — the debt, labour claims and so on because that is very difficult for us not only in terms of financial outlay but also in terms of managing the restructuring,” Ethiopian Airlines Chief Executive Officer Tewolde Gebre Mariam said in an interview in Addis Ababa.
The predictable decaying dead albatross(es). No sane business would touch this with a 10ft barge pole.
 

Gordon_R

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The predictable decaying dead albatross(es). No sane business would touch this with a 10ft barge pole.
IMO there is nothing worth saving, except for political vanity. A company name is of limited use, and any intellectual property, training, and company culture, is pretty much gone. The Covid lockdown has provided an opportunity for a clean sheet, if only the government has the courage.
 

Mila

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They have been saying this for years.. how long do they need to cover up the corruption
 

ponder

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IMO there is nothing worth saving, except for political vanity. A company name is of limited use, and any intellectual property, training, and company culture, is pretty much gone. The Covid lockdown has provided an opportunity for a clean sheet, if only the government has the courage.
South African Airways Technical (SAAT) could be sold to a private company, some people removed and it would do well I reckon. But yeah under current gov I see no point.
 
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