SAA desperately needs its government bailout

powermzii

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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.
The new planes are supposed to cover the old ones being 'retired' so they would need the new ones first to take over the routes, else fallow routes. Be that as it may - the old assets wont cover much, if any of the new ones - no one is buying 340s in this day and age
 

The_Librarian

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So Govt is willing to sacrifice some money in order to save SAA... but if they screw the taxpayer with higher taxes or more taxes, then the taxpayer will be cancelling most expenses (like DSTv etc) causing those companies to downsize and retrench staff, which will have a larger impact (which we won't see for a few months) than just closing SAA down.

What they really should be doing is to stimulate the economy (and do a graceful shutdown of every single financially-stressed SoE) - this way there will be jobs for the people coming from the shutdown SoE's.

But I guess they won't do this. Business and oinkage as usual.
 

BBSA

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The ANC National Executive Committee has agreed that South African Airways must remain a national airline, but that "substantial restructuring" will be required.

ANC secretary-general Ace Magashule made the remarks at a briefing on Wednesday, following an NEC meeting over the weekend where members discussed state-owned enterprises, among other matters.

 

Rabobi

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The ANC National Executive Committee has agreed that South African Airways must remain a national airline, but that "substantial restructuring" will be required.

ANC secretary-general Ace Magashule made the remarks at a briefing on Wednesday, following an NEC meeting over the weekend where members discussed state-owned enterprises, among other matters.

So more time wasting and more bail outs.

So no new news here, just move along.
 

The_Mowgs

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The ANC National Executive Committee has agreed that South African Airways must remain a national airline, but that "substantial restructuring" will be required.

ANC secretary-general Ace Magashule made the remarks at a briefing on Wednesday, following an NEC meeting over the weekend where members discussed state-owned enterprises, among other matters.

Thanks for the tax hike po3se
 

Cius

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The ANC National Executive Committee has agreed that South African Airways must remain a national airline, but that "substantial restructuring" will be required.

ANC secretary-general Ace Magashule made the remarks at a briefing on Wednesday, following an NEC meeting over the weekend where members discussed state-owned enterprises, among other matters.

Translation: SAA is just too valuable a source of looting for us to easily give it up so we want to keep it. How else are we supposed to redirect taxpayer money into our pockets and the ANC's bank accounts? Stop arguing and accept this you sheep.
 

The_Librarian

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Law of Unintended Consequences will come down hard like a cold, hard bitch.
 

Chris_the_Brit

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Government struggling to convince banks to loan SAA billions

Government is struggling to borrow R2bn from reticent banks, with Public Enterprises Minister Pravin Gordhan saying members of his ministry are working their “backs off” to ensure the airline survives.

At the weekend, the ANC national executive committee agreed to keep SAA as the national airline “with substantial restructuring” as opposed to other options reportedly mooted by the airline’s business rescue practitioners, including allowing it to be liquidated.

But SAA needs billions of rands to remain a going concern. A consortium of banks has already lent it R2bn to remain in the air, with another R2bn urgently needed. Government is trying to borrow the money from banks.
In an interview Gordhan said numerous meetings and engagements with relevant parties, including Treasury and banks, are taking place daily to find a solution to the cash crunch. “We have been working our backs off to save SAA… our backs off. We are working to find the necessary cash,” he said.

Gordhan did not want to commit to whether there will be retrenchments at the national carrier, but said he is confident that SAA can be saved. “The business rescue practitioners say they’ve got a plan. But there will have to be serious intervention.”
As part of SAA’s business rescue, government pledged to contribute the R2bn, which it planned to borrow from banks.

However, Gordhan may be struggling to convince banks to lend the funds, as the new loans may not come with any government guarantees – unlike in the past.

Every year for the past thirteen years the state has provided guarantees for SAA loans. As the cash-strapped airline has not been able to repay some of these loans, Finance Minister Tito Mbownei had to announce in October that the state would honour the guarantees by repaying more than R9bn over the next three years. And that’s on top of the R16.5bn in bailouts the government provided to SAA over the past decade.
Bad enough taxpayer's money is funding this nonsense...and yet the ANC are leaning on banks (again) to lend even more. Guess who will pay for this ultimately...
 

Gaz{M}

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It's "breaking our backs" or "working our tails off". Not "working our backs off".
 

chefdude98

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What was the point of placing SAA under business rescue if they going to do whatever the **** they wanna do?

This country is a ****ing joke.

People are starving, homeless, lack access to water, Eskom is in trouble, we need more jails & schools to be built BUT the ANC's priority is keeping SAA a national carrier.
 

Paul_S

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Last edited:

Swa

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What was the point of placing SAA under business rescue if they going to do whatever the **** they wanna do?

This country is a ****ing joke.

People are starving, homeless, lack access to water, Eskom is in trouble, we need more jails & schools to be built BUT the ANC's priority is keeping SAA a national carrier.
Exactly. The whole point was that the ANC would no longer have a say.
 

Swa

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Here's an idea. Apply for business rescue for all SOE's. Surely they can't save them all.
 

zophas

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What was the point of placing SAA under business rescue if they going to do whatever the **** they wanna do?
You're thinking of business rescue as it applies to the rest of the world. We are special and South African Business Rescue has it's own rules.
 

Gaz{M}

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What was the point of placing SAA under business rescue if they going to do whatever the **** they wanna do?

This country is a ****ing joke.

People are starving, homeless, lack access to water, Eskom is in trouble, we need more jails & schools to be built BUT the ANC's priority is keeping SAA a national carrier.
Actually, the Board of SAA was about to Liquidate SAA. But hours before (not joking), PG launched an emergency BR process to prevent the liquidation.
 
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