SAA desperately needs its government bailout

supersunbird

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And the cost to reputation and reliability? Not all flights are revenue generating and you can't predict which ones will be and which ones not. If you start cancelling the ones that turn out loss making it's a signal you can't service your clients reliably.

I guess SAA should also get a motto we can play around with like the post office "we deliver you to where you want to go, sometimes."

Not talking about specific flights, by flights I mean flights of a route.
 

Swa

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Not talking about specific flights, by flights I mean flights of a route.
Then you stop offering that route. You don't cancel flights people have paid for and depend on. It was an act of desperation to pay for salaries.
 

Gaz{M}

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OR maybe those planes weren't anywhere near full enough, so they could cancel them and accommodate the passengers on other flights more cost effectively. (to conserve cash for salaries).

I'm sure there are plenty of half empty SAA planes flying around today. Who is booking up the flights? Nobody who isn't forced to.
 

Gaz{M}

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Well the 14th February is only two odd weeks away so we will know more by then on the BR process and the future.
 
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SAA is believed to have secured loan funding from the Development Bank of Southern Africa (DBSA) needed to run the airline during the business rescue process.
The airline had initially sought R4bn to fund the rescue while it was being restructured, but it is believed that amount has since grown to R5.5bn. The first R2bn was provided through a loan from a consortium of commercial banks.
The exact size of the loan from DBSA is expected to be announced on Tuesday. It will be fully guaranteed by the Treasury.
 

Gaz{M}

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"Key impressions of the financial results and activities

The Bank achieved net profit for the year amounting to R3.10 billion (31 March 2018: R2.28 billion). Sustainable earnings (net profit excluding foreign exchange gains or losses and revaluation adjustments on financial instruments) amounted to R2.32 billion (31 March 2018: R2.76 billion). Net profit was boosted by foreign exchange gains of R744 million compared to foreign exchange losses of R302 million in the prior year. The Bank closely monitors its exposure to foreign exchange risk in order to limit the downside risk emanating from the Rand appreciation. Return on equity based on sustainable earnings is 6.5% (31 March 2018: 8.3%).

Net interest income grew by 17% to R4.49 billion (31 March 2018: R3.85 billion) Impairment charge increased to R1.44 billion compared to R623 million in the prior year in line with IFRS 9 provisioning requirements and in particular, the additional expected credit loss impairment provisions in our SADC portfolio due to changes in the economic conditions."

Found the 3 Billion :thumbsdown:
 

The_Librarian

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....substantial additional funding will be required to bankroll SAA until it is able to reach a position of sustainability.

It will *never* be sustainable. Kill it NOW.
 

daveza

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The government will not be giving embattled airline SAA another bailout.

So says public enterprises minister Pravin Gordhan in a statement issued after meetings with striking unions on Tuesday afternoon.
 

Swa

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FFS can't they all just say no for a change? Why must there always be a fool to help the clowns?

When an animal is laying there with no legs and can't move its head you don't keep pumping it with blood to keep it alive.
 

BBSA

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FFS can't they all just say no for a change? Why must there always be a fool to help the clowns?

When an animal is laying there with no legs and can't move its head you don't keep pumping it with blood to keep it alive.
You would argue differently if you were a parasite dependant on said animal.
 

The_Mowgs

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