Huge SAA flight cancellations

Gordon_R said:
Its very simple, though a technical explanation. Audited financial statements are prepared on the basis that a company is a 'going concern'. In the case of SAA this is impossible, since they are in debt and the government refuses to offer a blanket guarantee. If they are insolvent, then by law they must shut down, or the directors would be held liable for reckless trading.

Its a form of 'brinkmanship', give us the money or else...
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Doesn't the fact that they've not released statements also count as something for which the directors can be held personally liable, and the company should have been deregistered?
 
Sinbad said:
Doesn't the fact that they've not released statements also count as something for which the directors can be held personally liable, and the company should have been deregistered?
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Good point. It is an SOE not a publicly listed company, and only needs to give annual reports to the shareholder (not the JSE). This involves parliament, who also happen to control the bailouts...

Edit: Many other SOEs are in a similar position, but cannot be shut down for political reasons. Very long list: https://en.wikipedia.org/wiki/State-owned_enterprises_of_South_Africa
 
NOT going to help them IF they have NO passengers

Travel group Flight Centre South Africa has made the decision to stop selling South African Airways tickets, citing "ongoing concerns" about the airline's financial stability and the unwillingness of their travel insurance providers to continue covering SAA.
According to its website, Flight Centre South Africa, a subsidiary of the Flight Centre Travel Group, is the country's largest travel specialist with 170 businesses across leisure, wholesale and corporate brands.

Flight Centre SA to stop selling SAA tickets until 'certainty' returns to the market

Three travel insurance companies in South Africa have stopped covering tickets issued by South African Airways against insolvency, further clouding the outlook for the struggling state-run airline.
The decision by Santam’s Travel Insurance Consultants (TIC) to drop South African Airways prompted Australian travel agency Flight Centre Travel Group to stop selling tickets for the airline this week.

SAA dropped by leading travel insurer
 
MidnightWizard said:
NOT going to help them IF they have NO passengers

Travel group Flight Centre South Africa has made the decision to stop selling South African Airways tickets, citing "ongoing concerns" about the airline's financial stability and the unwillingness of their travel insurance providers to continue covering SAA.
According to its website, Flight Centre South Africa, a subsidiary of the Flight Centre Travel Group, is the country's largest travel specialist with 170 businesses across leisure, wholesale and corporate brands.

Flight Centre SA to stop selling SAA tickets until 'certainty' returns to the market

Three travel insurance companies in South Africa have stopped covering tickets issued by South African Airways against insolvency, further clouding the outlook for the struggling state-run airline.
The decision by Santam’s Travel Insurance Consultants (TIC) to drop South African Airways prompted Australian travel agency Flight Centre Travel Group to stop selling tickets for the airline this week.

SAA dropped by leading travel insurer
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749837
 
Sollie said:
View attachment 749837
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Market forces slowly starting to correct things
NO thanks to GORMLESS SAA pilots Union -- who never managed to grow any balls
There was once a time when they might have had an impact -- by striking and stopping all flights
It is now TOO late and they will likely ALL end up without jobs and little chance of Payputs or PENSIONS !
I wonder WHO it was advising them all this time ?
OBVIOUSLY someone that did not care that they were being paid -- BLOOD-MONEY South African TAX PAYER blood-money !
 
Gordon_R said:
They looked between the sofa cushions and found enough loose change to pay November salaries in full:
www.fin24.com

Despite financial woes, SAA manages to pay November salaries | Business

SAA spokesperson Tlali Tlali said the national carrier had paid the outstanding balance on November salaries, to all of its employees.
www.fin24.com www.fin24.com
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There will always be money to pay staff salaries. Government will not allow these people not to be paid. The threat of having no money to pay wages was a public stunt. It was always going to be paid from the onset.

In addition to this, government cannot let SAA go belly up. The consequences will be dire on the economy, which will inevitable lead to a collapse when lenders make all debt on all SOE's immediately payable based on the cross-default clause.

SAA will always run on tax payers money. We will fund it indefinitely, even if it means government keep increasing taxes to a point where they take 90% of all our income or they start cutting on grants. SAA will never be liquidates or go into bankruptcy.
 
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www.timeslive.co.za

SAA to undergo ‘radical restructuring’: Gordhan

Beleaguered national carrier SAA can only be saved by “radical restructuring”, public enterprises minister Pravin Gordhan said on Sunday.
www.timeslive.co.za www.timeslive.co.za

Beleaguered national carrier SAA can only be saved by “radical restructuring”, public enterprises minister Pravin Gordhan said on Sunday.

In a statement, the ministry said that the airline could not continue in its current form, and that drastic change was urgently needed.

The recent week-long strike by Numsa and the SA Cabin Crew Association were the final straw, causing “immense damage to the reputation, operations, and the deterioration of the finances of SAA”.

“SAA, therefore, cannot continue in its current form. The airline group will now go through a radical restructuring process which will ensure its financial and operational sustainability. There is no other way forward,” Gordhan said in the statement, issued on Sunday evening.

He said that government backed a national airline, but only if it was “viable, sustainable [and] profitable”.

“In pursuance of this, various options are being explored,” the statement read.

But before this could happen, SAA needed to get funding to keep the business running.

“Over the past few days there has been intense discussions with lenders to secure the necessary funds to cover the operational and structural transition over the next few months.

“It is our collective responsibility as South Africans to support SAA in its efforts to restore sales confidence among its customer base and rebuild revenues in the shortest possible time.
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No it is not. Your lot f'ked it up, your lot cannot fix it, we had nothing to do with its failure. gfy.
 
"Collective responsibility"? I don't sit on SAA board.
 
Count me out of that charlie foxtrot then. Not my fault it went belly up.

Blame your own economic policies, Dudu Myeni and the neverending bailouts.

Oh and I will not purchase SAA tickets, I'll purchase Kulula/BA/other tickets instead. I don't want to take a chance flying to some remote location, and getting stuck there should SAA really dies.
 
ponder said:
I would say the voters that kept voting for the party in charge under whom everything went to schit are also responsible.
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Luckily I'm not one of them so, post stands.
 
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Jopie Fourie said:
Why?

As far as I know it is only protection and coverage against insolvency that has been cancelled. No reason why government will not step in and offer guarantees to SAA for this. Whether people will get their money back from government though is a total different story altogether. Life insurance and all other insurance protection for the SAA are still in place.
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Travel insurance is usually a package which includes insolvency risk. There has been a few travel companies going bust recently and this insolvency insurance helped stranded travellers get back home. These days this and medical are the main reasons international travellers take travel insurance. Nobody taking travel insurance going to book an international trip on airline when they can’t insolvency insurance included. Maybe people who don’t take travel insurance will. I don’t know how many that is.
 
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