SAA business rescue plan in deep trouble

Nod

Executive Member
Joined
Jul 22, 2005
Messages
8,894
Not a frequent flyer. 1-2 times per annum. Normally Safair. Only used SAA to dump the miles which I anticipate becoming worthless soon....
I moved over to Turkish airlines' loyalty program just in case voyager miles become worthless
 

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
5,805
Great Moneyweb article today: https://www.moneyweb.co.za/news/companies-and-deals/sa-airlink-comair-could-determine-saas-fate/?utm_source=Moneyweb&utm_campaign=16d2256282-EMAIL_CAMPAIGN_2020_02_13_05_57&utm_medium=email&utm_term=0_b106a40770-16d2256282-141301501&mc_cid=16d2256282&mc_eid=158ce85317

TL;DR:

SA Airlink and Comair seem to have a large chunk of voting blocks when it comes to accepting the business rescue plan due to them being large creditors of SAA. I predict the business rescue plan being voted against and liquidation following shortly thereafter.
What business would miss an opportunity to kill their competition.

Payback's a beetch.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
2,269
What business would miss an opportunity to kill their competition.

Payback's a beetch.
If they decide to kill their competition, they'll only get pennies back on the R1bn that SAA owes them. Tough call.
 

Drifter

Honorary Master
Joined
Dec 19, 2012
Messages
18,465
I moved over to Turkish airlines' loyalty program just in case voyager miles become worthless
Have you ever flown with Turkish Airlines? I found them pretty piss poor. Will never use them again if I have a choice.
 

Nod

Executive Member
Joined
Jul 22, 2005
Messages
8,894
Have you ever flown with Turkish Airlines? I found them pretty piss poor. Will never use them again if I have a choice.
A few times a year. TK is not too bad. There are much worse out there.
I prefer KLM above TK, but TK is part of Star Alliance so I can also get points on Avis and local flights.
Use KLM when they are close to the TK price for international flights.
 

FlashSA

Executive Member
Joined
Oct 19, 2007
Messages
8,297
If they decide to kill their competition, they'll only get pennies back on the R1bn that SAA owes them. Tough call.
Well the debt to Comair is the fine SAA owes them for anti competitive activities (I seem to recall the fine being over a Billion Rand) so I doubt they are going to see anywhere near R1 to the Rand of that fine owed to them so maybe it would be in their best interests to kill them off rather and reap the increased turnover rewards.
 

The_Librarian

Another MyBB
Super Moderator
Joined
Nov 20, 2015
Messages
24,951

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
5,805
The Gov would rather bailout SOE's at a few Billion per year, than have to take on the full slam dunk of debt all in one go - if they were to be liquidated.

That much is quite clear.

After all, there is zero chance of a change in Governing party in the next 10 years.
 

The Trutherizer

Expert Member
Joined
May 20, 2010
Messages
2,764
And nobody was surprised surely. These unions are a poison to any business. They NEVER put themselves in the businesses' shoes and they are not informed enough to come up with viable plans that do not rely on somebody else picking up the bill. Today it's tax payers with bailouts, tomorrow it's pension funds. After that who knows? A cut of the fuel levy? Import duties. They don't even realise they are shooting themselves in the foot and making life more difficult even for those they purport to represent.

I believe communists are by and large on the wrong side of the Bell curve.
(of course I believe the same of crony capitalists - the extremes of the spectrum are nothing but fail)
 

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
21,186
oh right. forgot i heard yesterday the trade unions lost their court bid against the brp, so yes this makes sense.
I don't know why they even made an attempt. They've been down this path more than once before. A sizeable case law involves them.
 
Top