SAA Gets another bailout

[Nerfherder]

It still boggles the mind how such a loss can be made, when ticket prices and pax loads are very similar to their competitors, it like the fares aren't going into the correct bank account

Its not the local routes that are the problem, Mango is fine. Its the routes up in to Africa that are the money drain, we are basically subsidising the rest of the continent.

 

[Segg]

Its not the local routes that are the problem, Mango is fine. Its the routes up in to Africa that are the money drain, we are basically subsidising the rest of the continent.

But even on those routes they have good pax loads, it's as if they're not using any proceeds of ticket sales to service the company's debts, I can't see how how such substantial losses are being incurred unless they're funneling money

 

[SoTrue]

SAA management always wanted to restructure and reduce staff numbers to cut costs and improve profitability, but they are being prevented by government/ANC. Job losses are not allowed at any SEO, it looks bad.

 

[justplain]

I seriously hope that opposition parties make a HUGE scene in all the official languages FAR AND WIDE to explain why rural areas and the DEEPLY in need cannot get schools or medical treatment etc...all because......planes must fly.

 

[Ockie]

Its not the local routes that are the problem, Mango is fine. Its the routes up in to Africa that are the money drain, we are basically subsidising the rest of the continent.

Mmmmm not sure hey. Ethiopian do a lot of African routes also and they are profitable. Then again, they are more centrally located.

 

[SoTrue]

Mmmmm not sure hey. Ethiopian do a lot of African routes also and they are profitable. Then again, they are more centrally located.

It is a very complex situation. We must remember that SAA is very old (70-odd years?). The reasons for originally setting it up and keeping it all these years may well be quite different from the current situation. I can just imagine that it will be extremely difficult to model the effect of closing/selling SAA on the SA economy. Jobs will be lost, and this is a no-no for the government/ANC.

But it is more expensive to operate from the deep south in comparison to the European/Middle Eastern based competitors.

 

[Hosehead]

SAA never really recovered from the debt shambles brought by American Coleman Andrews who not only wrecked SAA but also bankrupted World Airways where he was also chair as well.

 

[Bosvark@]

Quite redicoulous. I keep an eye on flight radar and many of the A340's don't seem to be in the air anymore. Is that because there is no money?

 

[f2wohf]

Quite redicoulous. I keep an eye on flight radar and many of the A340's don't seem to be in the air anymore. Is that because there is no money?

They use way too much fuel, 4 engines mean double the maintenance and have a very low resale value (if there’s even someone interested to buy an A340).

 

[Ockie]

Quite redicoulous. I keep an eye on flight radar and many of the A340's don't seem to be in the air anymore. Is that because there is no money?

Some of their leases were renewed not so long ago if I remember correctly, so if that is the case,then we are paying for macines that is not bringing in money what so ever.

 

[f2wohf]

Some of their leases were renewed not so long ago if I remember correctly, so if that is the case,then we are paying for macines that is not bringing in money what so ever.

Only one out of 17 A340 is leased from what I can see on Airfleets.

Here I see 15 owned. http://www.southafrica.to/transport/Airlines/aircraft/aircraft-south-africa.php5

In other articles I see 12 purchases (https://www.google.co.za/amp/www.bi...-deal-still-on-the-table-deadline-21-dec/amp/), so at least 12 of the 17 are owned.

They might not need them operational wise and keep them as replacement in case of an A330 being unavailable, or plan to scrap them/sell them if they find a buyer.

 

[Hosehead]

http://www.gov.za/speeches/treasury-saas-a320a330-swap-transaction-3-dec-2015-0000

 

[f2wohf]

To do it meticulously, the planes flew as follows:

- SXG was owned by Iberia so maybe leased or purchase second hand;
- SNA/B/C/D/E/F/G/H only SAA so probably purchased;
- SNI only SAA but leased from ILFC;
- SXA/B/C only SAA;
- SXD/E/F flew 3 months for SAA, then 2 years for Jet Airways, then since 2 years for SAA. They are owned by SAA.

 

[Creag]

Ah yes. Another bailout with no strings attached = royally flushed down the great white porcelain express!

 

[Gordon_R]

I can't find any more recent news threads, but seems to be an ongoing never ending process:
http://www.fin24.com/Companies/Industrial/gigaba-likely-to-announce-r15bn-bailout-for-saa-20170803

Finance Minister Malusi Gigaba will in all likelihood announce a R15bn bailout to South African Airways (SAA) when the national carrier reports back to Parliament on its performance on August 4.

http://www.fin24.com/Companies/Indu...ts-as-it-officially-runs-out-of-cash-20170803

The National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (SACCA) will march to South African Airways (SAA) on Friday over a request for pay increases, just as the entity has revealed it has run out of cash, meaning they may not even get their basic salary.

Was quite surprising to see on front page of BBC website:
http://www.bbc.com/news/business-40813582

South African Airways (SAA) has run out of money and is teetering on the edge of bankruptcy, according to information given to the country's parliament.