R25 billion needed to rescue SAA

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MyBroadband Newsfeed
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R25 billion needed to rescue SAA

Aviation analysts expect that the government will have to spend even more than the R23 billion allocated to the funding of SAA to get the national carrier back on track.

National Treasury recently announced it had set aside R16.4 billion over the next three years to repay SAA’s guaranteed debt and to cover debt-service costs. A further R6.5 billion was earmarked to absorb the airline’s current losses.
 

ToxicBunny

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I get that they have to make good on the guarantees but for ****s sake stop the bleeding.
At this point I say pay the guarantees and let the entity float on its own... If it crashes and burns then shame.
 

NarrowBandFtw

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at what point is it cheaper to liquidate and just start over if you truly want a national carrier?

note the word "want", because we sure as fahk don't need it
 

Polymathic

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Give them another 5 billion and they'll come back saying they need another 25 billion to survive
 

mr_norris

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It seems like they use what they can get just to keep running, rather than turning things around. So if 3.5 gets them around 3 months further, then 25 will give them almost 2 years. They shouldn't be allowed to get more cash without being able to prove to us that their turnaround strategy will work.
 

Mystic Twilight

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at what point is it cheaper to liquidate and just start over if you truly want a national carrier?

note the word "want", because we sure as fahk don't need it
It's probably the cross default clause they have that's stopping liquidation, once that's paid off then liquidating saa won't affect eskoms and other soe debt.
 

Shadowchaser1

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Shows you what a socialist gov do. I emigrated end of last year. 8 Months earlier than expected. The company I work for in the ME flatly refused to fly any of us with SAA previously. Unreliable and way too expensive. They see them as a socialist government and incompetent. Highly unlikely that I will visit SA soon again. Where I settled everything is working etc.
 

Fuzzbox

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1 Billion for bailout and 24 Billion for long term salaries.
DIE ALREADY.
 

DXL

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If we offered 50% of SAA to an Equity Partner and they paid R15 Billion for it.

Govt can continue to pay off its share of R10 Billion over 3 Years. The Equity partner runs the Business and Govt get 50 % of profits.
 

ToxicBunny

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If we offered 50% of SAA to an Equity Partner and they paid R15 Billion for it.

Govt can continue to pay off its share of R10 Billion over 3 Years. The Equity partner runs the Business and Govt get 50 % of profits.
Given the state of the entity... I'd expect government to hand over 50%+1 and pay the equity partner at least R5bn whilst government still holds all the debt risk. BUT SAA would never see a single cent of government money again at that point and be purely a silent partner.
 

SoldierMan

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Just more billions wasted. Give it a few more years and they'll be back with bowl in hand.


 

ConfusedR

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SAA, the pre-1994 massive success and pride of South Africa.
After 1994, destroyed by the ANC.
This is the story of every SOE.

The EFF will not do any better.
 
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