SAA desperately needs its government bailout

BTTB

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While we can't blame people for striking at SAA, it is their right to earn a living wage.
My thinking is that the strike they undertook at the end of last year was in my opinion so poorly timed its probably going to cost them all their jobs now.
The ailing SAA was hanging in there on a thread when the strike started and it caused such a disruption that people are not even considering using SAA any more and Travel Agencies won't take future bookings on SAA either, so SAA is sitting now with empty seats. We made a domestic flight booking last week through a Travel Agency for April, they didn't even consider using SAA.

I watched some Union leaders being interviewed defending their action last year at SAA and while what they said had some merit, unfortunately the world doesn't care. Will the Unions learn from this, I doubt it. They will strike for percentage points while the very Company they work for loses Millions daily and in the case of SAA it was around R50 Million a day when they were striking. Furthermore, the Unions need to realise that the money they strike for ultimately comes from the Taxpayer who is struggling to make ends meet already. The same for every other SOE, its taxpayers money when the bailout comes each time.

You could probably trace the beginning of the end for SAA back to around 2013 when Gupta Lieutenant Malusi Gigaba started interfering at SAA and the rest followed.
 

Zophos

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I personally think that the reason for the Government NOT bailing SAA out is that there is no more funds to do so.

Any actions from Government to acquire more funds for bailouts will trigger a downgrade or worse.

Just an opinion...maybe fun times ahead
 

BTTB

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I personally think that the reason for the Government NOT bailing SAA out is that there is no more funds to do so.

Any actions from Government to acquire more funds for bailouts will trigger a downgrade or worse.

Just an opinion...maybe fun times ahead
Maybe. However, I think the team running the business rescue are cutting costs and selling assets and the shortfall owed thereafter will come from Government.

The other anomaly that people never thought about in late November, the damage a strike can cause to an airline when you don't have the Monopoly and people vote with their feet.
Unions thought that after the strike all will return to normal, it seems their luck (or should I say bailouts and customers) ran out.
Reading the article from November sheds more light on who thought who won the pyrrhic victory.
 

hawker

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Maybe. However, I think the team running the business rescue are cutting costs and selling assets and the shortfall owed thereafter will come from Government.

The other anomaly that people never thought about in late November, the damage a strike can cause to an airline when you don't have the Monopoly and people vote with their feet.
Unions thought that after the strike all will return to normal, it seems their luck (or should I say bailouts and customers) ran out.
Reading the article from November sheds more light on who thought who won the pyrrhic victory.
Yup that strike was incredibly poorly timed (and short-sighted) - no idea how the union leadership allowed it to go ahead, although if they hadn't gone on strike they would've just been delaying the inevitable.
 

The_Librarian

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My exact same thoughts regarding that strike.

Regardless, SAA would still have gone down at a later stage as they would've still requested another bailout loan.
 

Jola

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Yup that strike was incredibly poorly timed (and short-sighted) - no idea how the union leadership allowed it to go ahead, although if they hadn't gone on strike they would've just been delaying the inevitable.
I think that you severely overestimate the intellectual capabilities of union leaders.
 

The_Librarian

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I think that you severely overestimate the intellectual capabilities of union leaders.
The union leaders most probably made a rough calculation of [average number of passengers per day] x 365 = $$$MILLIONS

and did not take overheads etc into account.
 

The_Librarian

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...that Treasury was still "trying to find additional financing" for the airline.
Imagine that they scramble to get the money together, only to find some oinker's helped himself to the money just before they're going to pay it out.... :laugh:
 

Gaz{M}

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I think the union strike really screwed up Government's plans. Without the strike, they could have kept it on life support until the budget speech and new financial year started, with some fresh tax payer funds to loot.

The strike pushed them over the edge too early and now the BR process is underway. They are shitting themselves trying to find R2 Billion to keep going until 23 Feb or whenever the speech is.
 

The_Librarian

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Wait, what?

New planes?

Govt bailout = money for new planes plus the usual stuff on the side? I may be totally wrong and will delete this post if so... .
 

Jola

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You could probably trace the beginning of the end for SAA back to around 2013 when Gupta Lieutenant Malusi Gigaba started interfering at SAA and the rest followed.
Yeah, the handover of the profitable Mumbai route to Jet Airways comes to mind, all Gigaba's doing, in his efforts to please the Guptas.
 

Swa

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No doubt some corruption involved there as well.

While we can't blame people for striking at SAA, it is their right to earn a living wage.
My thinking is that the strike they undertook at the end of last year was in my opinion so poorly timed its probably going to cost them all their jobs now.
The ailing SAA was hanging in there on a thread when the strike started and it caused such a disruption that people are not even considering using SAA any more and Travel Agencies won't take future bookings on SAA either, so SAA is sitting now with empty seats. We made a domestic flight booking last week through a Travel Agency for April, they didn't even consider using SAA.

I watched some Union leaders being interviewed defending their action last year at SAA and while what they said had some merit, unfortunately the world doesn't care. Will the Unions learn from this, I doubt it. They will strike for percentage points while the very Company they work for loses Millions daily and in the case of SAA it was around R50 Million a day when they were striking. Furthermore, the Unions need to realise that the money they strike for ultimately comes from the Taxpayer who is struggling to make ends meet already. The same for every other SOE, its taxpayers money when the bailout comes each time.

You could probably trace the beginning of the end for SAA back to around 2013 when Gupta Lieutenant Malusi Gigaba started interfering at SAA and the rest followed.
I for one think we can blame them. The time to strike was 2007. Unions and our current president sat back and supported corruption.
 

Gaz{M}

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A union makes some sense, when a greedy corporation is making massive profits, but cutting workers or not raising wages.

But none of the SOE's have this problem.
 

Solarion

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I desperately need an all expenses paid for two week holiday in Switzerland or Austria.

If I put my head out the window I can hear all the tax payers just screaming and performing to send me on that vacation :p:thumbsup:
 

The_Librarian

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It is logically to sell off your old assets first, and then use that money to partly fund new assets.

Seems the okes at SAA just went ahead and procured new planes without waiting to sell off their old planes first.

Excellent planning there. :thumbsup: Keep it up guys.
 
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