Huge SAA flight cancellations

FlashSA said:
Good. Cyril's first step in the right direction. Business rescue persons will take one look at the books, shout fu"# this and push SAA into liquidation.

Beginning of the end...
Click to expand...
Or negotiate favourable terms with lenders and creditors. Business rescue may be what's needed to turn things around. Unions have limited power under business rescue.
 
FlashSA said:
Good. Cyril's first step in the right direction. Business rescue persons will take one look at the books, shout fu"# this and push SAA into liquidation.

Beginning of the end...
Click to expand...
No, I think the Business rescue people will milk this for as long as possible and then decide that SAA cannot be rescued. It's like giving them a leaking lifeboat.
 
Jopie Fourie said:
Lol. This was not a decision by Cyril Ramaphosa nor was it even his own preference. There is no more money left for bailouts. Not to SAA, not to Eskom, nothing. They have no other option. Business rescue will be a bad thing for the unions, the airline staff and the airline itself. If government interference is going to happen at any time during this process, the implosion they have been warned about may well just happen and collapse the country in total.
Click to expand...
Actually, they may be planning to inject money into the SOE under strict conditions. This may be the only route to smother the unions, restructure and inject money into the business.
 
ForceFate said:
Actually, they may be planning to inject money into the SOE under strict conditions. This may be the only route to smother the unions, restructure and inject money into the business.
Click to expand...

Nope, that is not how business rescue works, unfortunately. I highly doubt the administrators will even allow further tax money to be poured into the SAA. The moment the SAA goes under business rescue, they are no longer in governments' hands and they lost all control over it. That being said, expect a lot of job cuts, for a start, and more than likely the eventual liquidation of the airline. I highly doubt that there are any avenue left to save it as is.
 
Jopie Fourie said:
Nope, that is not how business rescue works, unfortunately. I highly doubt the administrators will even allow further tax money to be poured into the SAA. The moment the SAA goes under business rescue, they are no longer in governments' hands and they lost all control over it. That being said, expect a lot of job cuts, for a start, and more than likely the eventual liquidation of the airline. I highly doubt that there are any avenue left to save it as is.
Click to expand...
Watch this space. Business rescue is a fairly new concept in SA. It still has gaping loopholes.
 
BBSA said:
To be placed under business rescue there must be a reasonable possibility of saving the company. I doubt that is the case with SAA.
Click to expand...

From all the business rescue applications I know of personally, not a single company came out alive at the other end. They all ended up in liquidation. None of them were even remotely close to the dire situation of the SAA.
 
ForceFate said:
Watch this space. Business rescue is a fairly new concept in SA. It still has gaping loopholes.
Click to expand...

Wrong again.

Government will lose full control over the SAA. All board members will be relieved from their duties. Administrators will take over the day-to-day running. Creditors will decide whether it can be saved and how they can recoup their money. At the end of the day, everything is in their hands and the creditors will decide what happens to the SAA, and subsequently governments' guarantees issued as well.

There are no loopholes around this when it goes under business rescue.
 
Chris_the_Brit said:
https://twitter.com/x/status/1202305566112206850
Click to expand...

In this case, creditors are quite safe. They are backed by government guarantees so happily issued by the ANC. The government will pay all creditors every single cent. The only good thing about this whole application is killing the SAA and stopping it from sucking up more money.

If anyone thinks this application is about trying to save the SAA, or doing in creditors they are naive. This process has already been agreed to by all creditors.
 
British Airways was privatised in 1985, don't see why this couldn't happen to SAA (if anyone actually wanted to take it over that is). Otherwise it's just a black hole where money goes to waste. Let it fail.
 
SoldierMan said:
British Airways was privatised in 1985, don't see why this couldn't happen to SAA (if anyone actually wanted to take it over that is). Otherwise it's just a black hole where money goes to waste. Let it fail.
Click to expand...

Agreed, but the SAA's predicament is too severe. No private company or investor will ever have any interest in it. Just another legacy the ANC left, displaying their 'excellence' - not in building and growing, but rather decay and destruction. Their will be no chance of privatization for the SAA, there will be no chance of rescuing it. It will be liquidated, it will be closed down. I am 100% convinced that creditors will recover substantial amounts of their investments from government.

The only good thing coming from this is for us tax payers who were forced to finance this whole mess. I totally agree with you, South Africa does not need a national airline. The country is a s**thole in any event.
 
Scooby_Doo said:
I am sure selling of the "brand" could be part of the liquidation.

Might come back as a private company.
Click to expand...

Just my opinion, but looking back at the past 20 years of ANC rule, imagine having borrowed millions, tens of millions even billions to the SAA and seeing it going down in ruins, struggling to get repayments, sitting with government threats, promises, negotiations, empty guarantees... and still no, or very little, debts repaid. I think it must be hell for these creditors. I think the majority of them just want to get out of having to deal any further with the ANC. When the vote comes, I think the majority of them will just try to cut the least losses and walk out of this.

I do not see any new company, in any way or form ever coming from this again.

The question, however, will the ANC try and launch a new AmaSafferAirWays after this?
 
News article with some discussion:
www.fin24.com

SAA must go into business rescue, Ramaphosa orders | Business

A letter signed presidency director-general Cassius Lubisi says developments have 'necessitated a change of approach' to address the 'dire situation' at the state-owned airline.
www.fin24.com www.fin24.com

Parliament's oversight committee on public accounts, which was set to meet with the airline's leadership on Thursday, welcomed the business rescue announcement. "The committee has been informed that this is the only viable route to avoid an uncontrolled implosion of the national airline. Scopa is made to understand that an administrator will move in and the board will effectively not be in charge," said its chairperson Mkhuleko Hlengwa in a statement.
Click to expand...
 
Last edited:
I see news24 updated their article. Solidarity claims the ANC was forced into taking this decision in an attempt to control the process. Solidarity also said that the ANC cannot do this as they already launched the court application. This is great news. The ANC must be kept out of this at all costs.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X