R991m FY loss for SAA

daveza

daveza

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http://www.moneyweb.co.za/moneyweb-south-africa/r991m-fy-loss-for-saa

South African Airways Ltd., the continent’s biggest carrier, said it had an operating loss of R991 million in the 12 months through March because of unprofitable routes and a weaker rand.

The state-owned carrier was most affected by currency changes, according to Chief Financial Officer Wolf Meyer. Higher fuel costs and competition from Middle East carriers affected SAA’s long-haul routes, all of which were unprofitable, the company said.

“Two big factors are the high fuel price and the weakening of the rand,” Meyer told reporters in Johannesburg. “The weakening rand spoiled the party for us while we were cutting costs.”

The declining South African currency will continue to have a “severe” impact in the year through March 2014, he said. The rand has slumped 23 percent against the dollar since the beginning of last year, the worst performer of 16 major currencies tracked by Bloomberg.

SAA plans to cut costs, lease more fuel-efficient aircraft and focus on more profitable routes in order to recover financially. The airline continues to need “billions” of rand from the government and won’t break even for four to five years, Chief Executive Officer Monwabisi Kalawe said in an interview last month.
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When will this end.
 
Guess we'll see another bailout of a couple of billion soon....

While at it get another one ready as I'm sure Sanral will be next in line.....
 
Privatise all parastatals because they are just a gravy train. The less the anc has to do with anything the better.
 
They have massive currency risk, but no cash to funnel into treasury function to mitigate this risk? Or are they simply gambling on the currency to be able to benefit from the upside of ZAR movements?

In both cases, they are complete morons for doing so...
 
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Does anyone here every fly SAA if they have a choice? I certainly don't.
 
DJ... said:
They have massive currency risk, but no cash to funnel into treasury function to mitigate this risk? Or are they simply gambling on the currency to be able to benefit from the upside of ZAR movements?

In both cases, they are complete morons for doing so...
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Was thinking the same thing....

Also was it not SAA that was uncovered when the Rand took a tumble after 9/11 and they posted heavy losses due to it?
 
OrbitalDawn said:
I'd prefer not to have my luggage stolen, thanks.
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SAA don't handle luggage. It's swissport - outsourced by Airports Company AFAIK. If your luggage is going to be stolen, it will be done no matter who the airline.
*Edit* outsourced by the airline.
 
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iaywtimnbe said:
SAA don't handle luggage. It's swissport - outsourced by Airports Company AFAIK. If your luggage is going to be stolen, it will be done no matter who the airline.
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Nope, airlines handle it.

Baggage handling is a partnership between the airlines and their ground handlers.
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http://www.iol.co.za/news/south-afr...vent-baggage-theft-acsa-1.484617#.UuoImxCSw0I

Briefing a joint portfolio committee meeting in Parliament yesterday, Acsa's operational manager, Bongani Maseko, said SAA, Mango, One Time, Kulula, British Airways or any of the country's other airlines would be accountable for lost or stolen luggage once it was booked in.

He said baggage pilferage was a problem, but only with certain airlines.

"The airlines will have to look at their baggage-handling crews," said Maseko. "It is only happening with certain airlines. The airline must ensure that the baggage is loaded correctly.

"I say this because during the final draw in Cape Town, one of the Fifa delegate's bags was left at OR Tambo Airport. We expect every airline to instantaneously know where their passengers' bags are at any time."
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Brawler said:
Does anyone here every fly SAA if they have a choice? I certainly don't.
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I personally prefer SAA domestically because I never had any bad experience to complain about. The one time I lost my luggage, it was flown back and delivered to my door step. 1Time was my worst airline experience (delays).
 
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