SAA cancels loss-making Beijing route

[Ockie]

Cape Town – South African Airways has announced at an AGM media briefing in Johannesburg that it will be closing its loss making Beijing Route.

SAA Acting CEO Nico Bezuidenhout confirmed that the loss on the SAA route was an estimated R1bn over the past three years. SAA debuted its non-stop route to Beijing, China, in January 2012.

In line with this decision SAA has been actively strengthening its bilateral cooperation with Air China, following the announcement that Air China will launch a direct route to Johannesburg from March 2015.

SAA also said it would be using its strategic Abu Dhabi route as part of the turn-around strategy.

The move comes as part of the airline's 90 Day Action Plan which was launched in December and no further details are available as to when the route will stop operation as yet.

At the AGM media briefing Finance Minister Nhlanhla Nene confirmed that Government guarantees to SAA top R14.4bn with R8.3bn already utilised.

http://traveller24.news24.com/News/Flights/SAA-cancels-loss-making-Beijing-route-20150130

 

[Creag]

Interesting that they have dumped their big chommies. Says a lot that they are cutting back on loss making business. Who knows maybe there is hope for the SAA.

 

[Solarion]

SAA Acting CEO Nico Bezuidenhout confirmed that the loss on the SAA route was an estimated R1bn over the past three years. SAA debuted its non-stop route to Beijing, China, in January 2012.

*cough* two years *cough*

 

[justplain]

this is similar to the UK- CPT route....that wasn't working for them either...odd that BA/KLM etc seem to be making it work just fine?

 

[b_crazy]

*cough* two years *cough*

Now I want to know what the projected profit was over that same period.

 

[Solarion]

Now I want to know what the projected profit was over that same period.

With 500 million lost a year it looks like they aimed low, and hit even lower..... :erm:

 

[satanboy]

Just close them down already.

 

[Jola]

this is similar to the UK- CPT route....that wasn't working for them either...odd that BA/KLM etc seem to be making it work just fine?

Many airlines fly into Cape Town, I am always surprised at the planes that I see there. Also Emirates, Lufthansa, etc.

The Beijing thing was always a political fancy.

SAA is useless.

 

[Azbubu]

*cough* two years *cough*

2012- 2013 year 1
2013- 2014 year 2
2014 -2015 year 3