Huge SAA flight cancellations

zippy said:
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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But, they did say that all other insurance, life insurance included, are still in place. The only exception is the event SAA goes bust and you need to buy your own return ticket - again. Not many people I know, myself included, are too concerned about this insurance as the chances of a whole airline going bust is slim. In any event, the real impact of this decision now comes in the form of big travel agencies refusing to sell SAA tickets. This will be hurting them. But, again, a threat or two from government and closing them down will have them reverse their decisions in the next year or so.
 
Jopie Fourie said:
But, they did say that all other insurance, life insurance included, are still in place. The only exception is the event SAA goes bust and you need to buy your own return ticket - again. Not many people I know, myself included, are too concerned about this insurance as the chances of a whole airline going bust is slim. In any event, the real impact of this decision now comes in the form of big travel agencies refusing to sell SAA tickets. This will be hurting them. But, again, a threat or two from government and closing them down will have them reverse their decisions in the next year or so.
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If they thought the chances were slim they'd carry on selling the insurance.
 
Sinbad said:
If they thought the chances were slim they'd carry on selling the insurance.
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Yeah no, they are 100% correct in their decision. They know it is about to fail and SAA is indeed about to fail. All I am saying is that SAA probably thought it would never affect them because they could just get a guarantee from government in terms of insolvency and their passengers.
 
If the Gov won't close it down, it is our responsibility as citizens to close it down by not buying tickets anymore.

We have no choice with Eskom, Water boards, Municipalities, etc. and are forced to buy from them, so take this very rare choice in terms of your tax money being wasted, and close it down by withdrawing your support. I just submitted my tax returns and I cried when I saw the hundreds of thousands of rand this ANC gang of crooks has stolen from my family's income to support these looting projects.

No more! I will "tax revolt" in any way I can, like Helen said.

I just booked Comair flights, which were thousands of rand cheaper than "Vrot Mango". You can buy overseas tickets on dozens of other airlines, and they are 95% of the time cheaper anyway.

Do the right thing. You can boycott etolls, now boycott SAA/Mango/SA Express and their associates.

I'm sorry if you work at/for SAA. I have nothing against you. But we cannot steal money from the middle class to pay your salaries anymore.
 
Gordhan says SAA in ‘intense discussions’ with lenders, calls on public to buy tickets

Minister of Public Enterprises Pravin Gordhan has said that cash-strapped airline SAA is in intense discussions with lenders to secure much-needed funding and will go through a "radical restructuring process" to ensure its financial and operational sustainability.

Gordhan, in a statement on Sunday afternoon, said a weeklong strike by members of National Union of Metalworkers of SA and the SA Cabin Crew Association had "caused immense damage to the reputation, operations, and the deterioration of the finances of SAA".

The strike, which cost the airline an estimated R50m per day, ended on November 22.

The finance minister's latest statement comes after Flight Centre on Thursday said it would stop selling SAA tickets until "certainty" returned to the market.

Both Santam and Hollard insurance have withdrawn insolvency cover benefit on SAA tickets.

Support the airline

Gordhan on Sunday said it was the "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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www.fin24.com

Gordhan says SAA in ‘intense discussions’ with lenders, calls on public to buy tickets | Business

SAA will go through a "radical restructuring process".
www.fin24.com www.fin24.com
 
Hopefully there are not that many stupid lenders left believing that SAA can be rescued. Hopefully they get no money.

As for this...

Gordhan on Sunday said it was the "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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Gordhan is erratic and displaying signs of an uneducated person making a claim like this. In addition to a lack of education, he is living on another planet. As tax payers, it is our collective responsibility to ensure SAA collapses in total to ensure that they no longer rip us off.
 
Jopie Fourie said:
Hopefully there are not that many stupid lenders left believing that SAA can be rescued. Hopefully they get no money.
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That's what I'm hoping for.

Also, if those lenders want to do due diligence, they'll ask for the withholded financial results... and tell the Govt that no money will be forthcoming until those missing reports see the light of day.
 
Gordhan in a bit of unfamiliar ground here, with no readily available tax payer money to fix his blunders. If we were privy to SAA books for the last 2 years it would reveal what a monumental idiot he is and how the SAA decline accelerated under his management.
 
Jopie Fourie said:
Hopefully there are not that many stupid lenders left believing that SAA can be rescued. Hopefully they get no money.

As for this...



Gordhan is erratic and displaying signs of an uneducated person making a claim like this. In addition to a lack of education, he is living on another planet. As tax payers, it is our collective responsibility to ensure SAA collapses in total to ensure that they no longer rip us off.
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His communist beliefs shining through
 
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”.
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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?
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www.moneyweb.co.za

Is SAA trading under insolvent circumstances?

Default clauses may be triggered in contracts and agreements.
www.moneyweb.co.za www.moneyweb.co.za
 
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.
 
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