SA Express seeks emergency funding

O

Ockie

Resident Lead Bender
Joined
Feb 16, 2008
Messages
55,114
Reaction score
7,335
Location
Henceforth AKA OckieMoto :-)
42899.jpg

ohannesburg - State-owned airline South African Express is seeking government approval for a bank loan after entering insolvency and being unable to pay debts.

An application has been sent to the National Treasury to allow the regional carrier to borrow the money, Dipuo Letsatsi-Duba, chairman of the government’s portfolio committee on public enterprises, said today in a statement.

The airline has put cost-saving measures in place to curb waste, she said.

The carrier’s management said “agreements had been reached with service providers to address the challenge,” according to the statement.

“The entity needed to raise funds with the bank but the bank needed a shareholder agreement to secure the loan.”

The company didn’t immediately return a voice message seeking comment.

South African Express joins larger state-owned airline South African Airways in needing funds to stay afloat.

SAA is “technically bankrupt” and surviving off state-guaranteed loans, Public Enterprises Minister Lynne Brown has said.

A 90-day recovery plan for SAA was handed to South Africa’s government earlier this month.

South African Express operates a fleet of 24 Bombardier jets ranging in size from 50 to 74 seats, according to the company’s website.

It flies within South Africa and to neighbouring countries including Zimbabwe, Namibia and Mozambique.

Mango Airlines, SAA’s low cost unit, is profitable and adding routes.
Click to expand...

http://www.iol.co.za/business/companies/sa-express-seeks-emergency-funding-1.1788183
 
They charge me almost 4k return to fly to Cape Town and they need help? May they burn in hell. Fskers.
 
Ockie said:
Oh. For some reason thought you were in PE, cause then you could have used FlySafair instead.
Click to expand...

Everyone thinks anyone from EL is in PE. Hehe, tell anyone not from EL or PE that you are from EL, a week later they`ll tell you that you are from PE :D
 
Ockie said:
Cause PE is the closest to something in that region that resembles some kind of civilisation :p
Click to expand...

If you can handle the smell and violence :D hehe, PE is not bad, but too violent for me :D
 
kat06sa said:
You're thinking about Airlink.
Click to expand...

I know Airlink serve Mthatha, are they still the only airline on that route?

Talking about Airlink, are they profitable? Being private run and all, was just wondering how the two compare.

B
 
Bismuth said:
I know Airlink serve Mthatha, are they still the only airline on that route?

Talking about Airlink, are they profitable? Being private run and all, was just wondering how the two compare.

B
Click to expand...

Yes only airline on that route. As far as I know Airlink are doing okay. Has always been a tightly run ship with good top level management. And now that there's a truce on the regional airline war, things have stablised some more. I thought that after the two accidents in 2009 they'd really struggle, even close. But from what I hear, them and comair, are really well oiled machines.
 
kat06sa said:
Yes only airline on that route. As far as I know Airlink are doing okay. Has always been a tightly run ship with good top level management. And now that there's a truce on the regional airline war, things have stablised some more. I thought that after the two accidents in 2009 they'd really struggle, even close. But from what I hear, them and comair, are really well oiled machines.
Click to expand...

I was working at Airlink when those two accidents happened, was expecting the worst, but they have weathered the negative publicity well. I have heard recently that they are actually doing quite well, without any government assistance that I am aware of. Maybe their management team should be put in charge of SAA/SAX?

B
 
Bismuth said:
I was working at Airlink when those two accidents happened, was expecting the worst, but they have weathered the negative publicity well. I have heard recently that they are actually doing quite well, without any government assistance that I am aware of. Maybe their management team should be put in charge of SAA/SAX?

B
Click to expand...

Tthey might be getting competition soon. Skywise (Now owned by PAK Africa) is looking at doing regional routes also and so is a new start up Fly Blu Crane. CEM Air might also expand into other thin regional routes?
 
Ockie said:
Tthey might be getting competition soon. Skywise (Now owned by PAK Africa) is looking at doing regional routes also and so is a new start up Fly Blu Crane. CEM Air might also expand into other thin regional routes?
Click to expand...

Cemair operates on niche routes, where there is basically no competition, which is really working for them. I hear they are bringing in a Dash 8, but a -100.

Bismuth said:
Maybe their management team should be put in charge of SAA/SAX?

B
Click to expand...

Or maybe just have government stop interfering so much. If SAA stopped the Beijing route, that's R300 mil saved a year. Kind of a tough job to balance for management. Shareholder instructs you to operate unprofitable and then is shocked when you make a loss. You could put the best and the brightest into the hot seat at SAA/SAX and they still won't turn a profit.

Although, I'm hearing whispers of Etihad sniffing around. One can only hope. If they were to one in, it would be just before the house of cads collapses, to strengthen their hand at the negotiating table.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X