Government cuts off further funding to SAA

Hanno Labuschagne

MyBroadband
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Government cuts off further funding to SAA

South African Airways has been denied any further funding by its government owner as the national carrier looks for ways to recover from the coronavirus crisis and a local form of bankruptcy protection.

The airline’s administrators, who were put in charge in December, were told by the state to instead source cash from available resources, according to a letter they sent to affected parties and to Bloomberg News dated April 14.

“We are currently assessing the impact of this development on the business-rescue process and will communicate any decisions to be made,” they said in the letter.

[Bloomberg]
 

NarrowBandFtw

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“We are currently assessing the impact of this development on the business-rescue process and will communicate any decisions to be made,” they said in the letter
Classic!

So there was no plan-B, the only plan was to use the well worn begging bowl yet again ...
 

Creag

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The government has told the SAA business rescue practitioners (BRP) that it is unable to provide the airline with further funding, portending its imminent death or at best an orderly winding down.

It also refused its request to raise funding for the airline in foreign capital markets. SAA is unable to raise further funding in domestic markets and owes significant debt to a consortium of local banks. SA Express, also state-owned, is in liquidation.

The practitioners, Les Matuson and Siviwe Dongwana, advised creditors of the development on Tuesday, saying that they were “assessing the impact of this development on the business rescue process and will communicate any developments in due course.”
 

Toxxyc

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Everyone is suffering. To keep an entity that leaks money like a sieve alive is just stupid. Yes, it's not lekker for SAA and the people working for them, and it's not good for South Africa as a whole to lose the national carrier, but it's the best right now, IMO.
 

ToxicBunny

Oi! Leave me out of this...
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I'm glad you have a P20 and make good use of the MyBB mobile app. :p

Governments middle name is 'there is no money'. Corruption always seem to find money.

Watch this space. They will get their money.

FFS.... I keep removing that damn "mobile" reference and it keeps popping back up... :mad: :mad: :mad:

Except there is literally no money anymore, there was "no money" prior to this event, now the government has lost 1/20th of its annual revenue generation stream... so now there is seriously no money...
 

RedViking

Nord of the South
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FFS.... I keep removing that damn "mobile" reference and it keeps popping back up... :mad: :mad: :mad:

Except there is literally no money anymore, there was "no money" prior to this event, now the government has lost 1/20th of its annual revenue generation stream... so now there is seriously no money...
You would think so.... we'll see. You have a pension fund?..... Sorry, let me rephrase.. You HAD a pension fund.
 

Fuzzbox

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Jun 10, 2009
Messages
1,228
People have voted with their wallets for a long time now.
We have a choice and choose not to fly SAA at all costs when travelling overseas.
All the bailouts seem to do is pay salaries for a few more months.
Seems like no plan but to keep on doing the same.

Close this drain on the fiscus once and for all.
 
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MightyQuin

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Government cuts off further funding to SAA

South African Airways has been denied any further funding by its government owner as the national carrier looks for ways to recover from the coronavirus crisis and a local form of bankruptcy protection.

The airline’s administrators, who were put in charge in December, were told by the state to instead source cash from available resources, according to a letter they sent to affected parties and to Bloomberg News dated April 14.

“We are currently assessing the impact of this development on the business-rescue process and will communicate any decisions to be made,” they said in the letter.

[Bloomberg]
At least Corona had one positive effect...
 

MeestaR

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Sep 17, 2016
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1,123
Oh really?
The ANC gvt is vertraag. We have already discussed this ~2 months ago to cut the SAA loose. Our enconomy could have been in a better state if they cut SAA funding.

Viva, ANC, viva... (slow clap)
 

Tander

Executive Member
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Jun 8, 2008
Messages
6,609
You would think so.... we'll see. You have a pension fund?..... Sorry, let me rephrase.. You HAD a pension fund.

Prepare for disappointment; when they announce SAA's closure later this year.
 
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