SAA desperately needs its government bailout

Swa

Honorary Master
Joined
May 4, 2012
Messages
24,112
I think air france has its own technical division here that can also do repairs for other aircraft. Some small carriers also have their repair all done in house like safair, so even if saat packs up there will be an opportunity to have other providers to expand and provide aircraft servicing.
This is the part many keep on missing. Most of the SAA staff is still required and will be picked up by other airlines that can expand their businesses. It's mostly the useless bunch quivering about losing their jobs. It may even be more beneficial to our economy to keep them on charity.
 

Sollie

Executive Member
Joined
Apr 20, 2005
Messages
6,801
Before everyone just keeps on calling for SAA to close down, keep in mind, SAAT plays a key role even if no one likes it. SAA closes down, SAAT closes down and we sit with every other major airline refusing to come here because sending planes here is pointless when no one can fix them if something goes wrong. This is kind of a double edged sword.
Oh dear! Whatever will those poor customs guys do then for pocket money? Now the can't deliberately try to extort and blackmail private airlines to use SAAT (regardless of the fact that SAAT is not qualified to service certain types of aircraft, the private company has it's own in-house skilled tech staff and major services is done in the Bahamas at their HQ).

Incidentally it's also why we as taxpayers had to pay up after customs guys tried getting clever with buddies. It caused a silent shitstorm that never made the news, questioning what customs was trying to achieve in an area they had no jurisdiction in, claims for loss of revenue, delays and routing another plane from Europe etc etc. SARS was too happy to pay and sweep the incident under the carpet. What happened to customs officers Hitler and Mussolini (with their dirty boots, too arrogant to clean them, before getting into a plane with beige carpets) is not known ...

At least hopefully this will not be happening anymore.
 

zophas

Senior Member
Joined
Mar 31, 2008
Messages
936
Oh dear! Whatever will those poor customs guys do then for pocket money? Now the can't deliberately try to extort and blackmail private airlines to use SAAT (regardless of the fact that SAAT is not qualified to service certain types of aircraft, the private company has it's own in-house skilled tech staff and major services is done in the Bahamas at their HQ).

Incidentally it's also why we as taxpayers had to pay up after customs guys tried getting clever with buddies. It caused a silent shitstorm that never made the news, questioning what customs was trying to achieve in an area they had no jurisdiction in, claims for loss of revenue, delays and routing another plane from Europe etc etc. SARS was too happy to pay and sweep the incident under the carpet. What happened to customs officers Hitler and Mussolini (with their dirty boots, too arrogant to clean them, before getting into a plane with beige carpets) is not known ...

At least hopefully this will not be happening anymore.
Why did this never make the news? I would like to see the details.
 
  • Like
Reactions: Swa

Swa

Honorary Master
Joined
May 4, 2012
Messages
24,112
Why did this never make the news? I would like to see the details.
Indeed. Sounds like another of those monopolistic practices where the guys who could do something better for cheaper are prevented from doing so by the elite.
 

Sollie

Executive Member
Joined
Apr 20, 2005
Messages
6,801
Indeed. Sounds like another of those monopolistic practices where the guys who could do something better for cheaper are prevented from doing so by the elite.
Indeed. The scary part is you need certification and qualified staff on the relevant aircraft to service that type of aircraft. SAAT had neither. This company actually closed down operations in South Africa. They were operating from Lanseria, involved in VIP transport around the world.
 

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
51,449
Before everyone just keeps on calling for SAA to close down, keep in mind, SAAT plays a key role even if no one likes it. SAA closes down, SAAT closes down and we sit with every other major airline refusing to come here because sending planes here is pointless when no one can fix them if something goes wrong. This is kind of a double edged sword.
What is your solution then, continuous taxpayer funded bailouts? Business turnaround to run profitably won't happen, we have been hearing about those for over a decade, so don't even mention is.
 

dunkyd

Expert Member
Joined
Mar 5, 2009
Messages
4,758
...and now SA Express, 600 million loss and 800 million stolen
 

Genisys

Executive Member
Joined
Jan 12, 2016
Messages
9,970
What is your solution then, continuous taxpayer funded bailouts? Business turnaround to run profitably won't happen, we have been hearing about those for over a decade, so don't even mention is.
I didn't suggest continuous bailouts anywhere? Split it away from SAA and then sell it to a private buyer?
 
  • Like
Reactions: Swa

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
51,449
I didn't suggest continuous bailouts anywhere? Split it away from SAA and then sell it to a private buyer?
Well, you didn't say that anywhere either, if end result is still SAA being killed, then yay to that.
 

chefdude98

Expert Member
Joined
Oct 31, 2017
Messages
1,623
Isn't Comair moving maintenance over to Lufthansa?

So SAA Technical will pretty much only be servicing state owned airlines.
 

chefdude98

Expert Member
Joined
Oct 31, 2017
Messages
1,623
Before everyone just keeps on calling for SAA to close down, keep in mind, SAAT plays a key role even if no one likes it. SAA closes down, SAAT closes down and we sit with every other major airline refusing to come here because sending planes here is pointless when no one can fix them if something goes wrong. This is kind of a double edged sword.
I think you're underestimating the private sector though.

If SAA Technical collapses it opens up the market to a new provider.

Comair is already in business with British Airways.Maybe British Airways would see it as an opportunity to invest further.

If SafAir doesn't have the funds they can go into partnership with somebody & fill in the gap left by SAAT.

If SAA Technical disappears somebody new will appear. It will become attractive to invest in a sector without much competition.

SAA Technical can also be privatised and restructured completely.

Planes won't stop flying here if SAAT disappears. Well not in the long term anyway.
 

Gordon_R

Honorary Master
Joined
Jul 5, 2009
Messages
11,897

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
6,154
According to flight trackers, all the planes are still flying around the world happily today.
 

Chris_the_Brit

High Tory
Joined
Mar 6, 2004
Messages
29,590
So.

Any news on what's happening now at SAA HQ? Mass panic?
They haven't secured the R2 billion funding but flights are still operational:

Government has yet to find the remaining R2 billion needed for the South African Airways (SAA) business rescue plan but has reaffirmed its commitment to seeing the business process to its successful conclusion.

“Following a meeting with the practitioners at the weekend, the Department of Public Enterprises is engaging with the National Treasury to raise funds for the airline in line with the [post-commencement funding] undertaking,” the Public Enterprises Ministry said in a statement on Sunday.

When SAA took the route of voluntary business rescue in December, Public Enterprises Minister Pravin Gordhan said R4 billion would be needed for the operation, and that half of the amount would be raised from lenders while the other half would be raised in a “fiscally neutral manner”.

Speaking at a breakfast briefing ahead of the annual World Economic Forum on Thursday Finance Minister Tito Mboweni said the government was still working on securing additional funding for SAA.

While it emerged last week that the airline had placed nine of its aircraft, 15 engines and other parts for up sale on January 10, it denied claims that this was in order to raise the R2 billion. Instead, the airline said the sale was to accommodate four new aircraft that have been added to its fleet.
 

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
6,154
Just imagine the loans being offered by banks. Must make Loan Sharks look generous.

I can forsee finance houses offering more money, but at stupid rates, like 15% interest plus guarantees to repay in 3 months etc.
 

Swa

Honorary Master
Joined
May 4, 2012
Messages
24,112
Just imagine the loans being offered by banks. Must make Loan Sharks look generous.

I can forsee finance houses offering more money, but at stupid rates, like 15% interest plus guarantees to repay in 3 months etc.
Even then it's risky as our government can't service its debt and will start defaulting.
 
Top