Huge SAA flight cancellations

Chris_the_Brit

High Tory
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Mar 6, 2004
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Interesting article on MoneyWeb today.

It isn’t a secret that South African Airways (SAA) has not produced annual financial statements since the March 31, 2017 annual report.

This means it has contravened the Public Finance and Management Act (PFMA), the Companies Act, and the King IV Code of Corporate Governance. Without a financial report, SAA has most probably not submitted income tax returns for 2017 and 2018, contravening yet another act.

Going back to the 2017 annual report, the Auditor-General (AG) delivered a damning qualified opinion and indicated that “a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern”.
Trading under insolvent circumstances may trigger default clauses

Certain legal contracts and agreements (such as loans and insurance agreements) may include default clauses that will be triggered if the company is trading under insolvent circumstances, or if it hasn’t produced annual financial statements.

Who at SAA is responsible for scrutinising all legal agreements, including loans and insurance contracts, to see if there is any risk in trading while insolvent, and, in failing to produce financial statements?
 

Cius

Executive Member
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The longer they delay, the worse it will be when it does collapse. SAA is losing millions every day. There is no recovery for it under our current government as they are unwilling to fire anyone. The fastest way to solvency is to cut the bloated workforce to similar levels of private airlines. Until they do that I will never buy a SAA ticket.
 

Neuk_

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MidnightWizard

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Next step is to BAN ALL other airlines and FORCE everyone to fly SAA

It IS the right / left / communist thing to do !
 

MidnightWizard

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SAA -- the NUCLEAR OPTION !

The key condition refers to SAA defaulting or compromising with its creditors on any of its leases or other loans: “… if a specified amount (typically $10m) of Financial Indebtedness is not paid by SAA after being declared due, repayment of the debt may be accelerated.” So, all debt could become due at once – and that would be an estimated R64-billion just for aircraft leases. And then there’s the 30 or so billion rand owed to the banks. Add in staff severance and it’s a chunky R100-billion.
And that’s not all. The memo goes on to note: “Almost all of the finance/leasing agreements are subject to a Cross Default clause so that, if SAA is in default on one loan document/financial indebtedness, this will cause a default in all the finance/leasing agreements.” This includes Eskom’s loans on power stations. Estimates suggested that this exposure may be in the order of another R300-billion.
It would bankrupt the country. So while business rescue is a useful strategy, and possibly the only one capable of forcing the government to make difficult political decisions regarding job cuts and the loss of patronage, it needs to be handled with the care of a nuclear bomb.


The Nuclear Option - Guy Leitch
 

Gaz{M}

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SAA -- the NUCLEAR OPTION !

The key condition refers to SAA defaulting or compromising with its creditors on any of its leases or other loans: “… if a specified amount (typically $10m) of Financial Indebtedness is not paid by SAA after being declared due, repayment of the debt may be accelerated.” So, all debt could become due at once – and that would be an estimated R64-billion just for aircraft leases. And then there’s the 30 or so billion rand owed to the banks. Add in staff severance and it’s a chunky R100-billion.
And that’s not all. The memo goes on to note: “Almost all of the finance/leasing agreements are subject to a Cross Default clause so that, if SAA is in default on one loan document/financial indebtedness, this will cause a default in all the finance/leasing agreements.” This includes Eskom’s loans on power stations. Estimates suggested that this exposure may be in the order of another R300-billion.
It would bankrupt the country. So while business rescue is a useful strategy, and possibly the only one capable of forcing the government to make difficult political decisions regarding job cuts and the loss of patronage, it needs to be handled with the care of a nuclear bomb.


The Nuclear Option - Guy Leitch
Horse crap. This is just scare mongering by the cadres.

No way any bank would call in all that debt and collapse the country. Bankers aren't stupid.
 

MidnightWizard

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Perhaps ...

One of the poor SAA pilots wife / mother / daughter is hijacked -- shot and killed at a traffic stop in Gangsta City
Decides enough is enough and flies a fully loaded Airbus into the Union Buildings

Clearly this will be described as a -- White Christian Right wing terrorist plot !
 

Freddl

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Mar 13, 2017
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You can buy overseas tickets on dozens of other airlines, and they are 95% of the time cheaper anyway.
Not saying I support any plan to continue bailing out SAA. BUT, I like flying directly to a destination. I hate sitting for hours at Dubai airport waiting for a connecting flight. The money you save when flying those types of airlines are in any case spent on a muffin and a coffee at Dubai - the most expensive airport in the world.

SAA also has better food and the seat space a little bit larger than the competitors. One the other hand, SAA has the worst cabin crew in the world
 

Blue Shirt

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Not saying I support any plan to continue bailing out SAA. BUT, I like flying directly to a destination. I hate sitting for hours at Dubai airport waiting for a connecting flight. The money you save when flying those types of airlines are in any case spent on a muffin and a coffee at Dubai - the most expensive airport in the world.

SAA also has better food and the seat space a little bit larger than the competitors. One the other hand, SAA has the worst cabin crew in the world
When SAA goes bust, other airlines are guaranteed to pick up those direct routes as they are just about the only assets with any real value this poor excuse for a company still have.
 

Gaz{M}

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Not saying I support any plan to continue bailing out SAA. BUT, I like flying directly to a destination. I hate sitting for hours at Dubai airport waiting for a connecting flight. The money you save when flying those types of airlines are in any case spent on a muffin and a coffee at Dubai - the most expensive airport in the world.

SAA also has better food and the seat space a little bit larger than the competitors. One the other hand, SAA has the worst cabin crew in the world
Afaik only New York and Hong Kong are direct. What other routes are you talking about? One destination does not make a case.
 

The Trutherizer

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"calls on public to buy tickets "

My apologies, but I can't risk random cancellations in my flight schedules.

The unions act like a natural disaster. Which is one of the only valid reasons, along with militant threats such as terrorism, to cancel all flights to and from a national key point airport.

Any rule or reg that says otherwise is poorly considered.
 

Freddl

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Mar 13, 2017
Messages
312
Afaik only New York and Hong Kong are direct. What other routes are you talking about? One destination does not make a case.
SAA operates direct flights from Johannesburg to the following destinations:

  • Abu Dhabi
  • Antananarivo
  • Dubai
  • Frankfurt
  • Hong Kong
  • London
  • Mauritius
  • Mahe Island
  • Munich
  • New York
  • Perth
  • Sao Paulo
  • Singapore
  • Washington (sometimes via Accra)
  • Zurich
Regional:

  • Abidjan
  • Abuja (from Jan 2016)
  • Accra
  • Addis Ababa
  • Beira
  • Blantyre
  • Bulawayo
  • Cairo
  • Contonou
  • Dakar
  • Dar es Salaam
  • Douala
  • Entebbe
  • Gaborone
  • Kasane
  • Kigali
  • Kinsasha
  • Lagos
  • Libreville
  • Lilongwe
  • Livingstone
  • Luanda
  • Lubumbashi
  • Lusaka
  • Maputo
  • Maseru
  • Maun
  • Nairobi
  • Nampula
  • Ndola
  • Pemba
  • Pointe-Noire
  • Swaziland
  • Tete
  • Victoria Falls
  • Vilankulos
  • Walvis Bay
  • Windhoek
 
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