SAA has two choices - Fire all staff or liquidate

Jamie McKane

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SAA has two choices - Fire all staff or liquidate

South African Airways administrators delivered a stark choice to those opposing their plan to fire the entire workforce and sell assets: It’s either that or full liquidation.

The state-owned carrier doesn’t have funds to continue trading nor pay salaries beyond the end of this month, and the government has so far refused requests for financial assistance, the team led by Les Matuson and Siviwe Dongwana said in a Thursday letter addressed to “all affected persons.”

[Bloomberg]
 

dunkyd

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What about those poor people selling R3 bottles of water for R17 ? How will they ever survive on hubby's government salary alone
 

Sl8er

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SAA has two options – Fire all staff or liquidate
“There is no recognition that things need to be looked at differently,” said Ralph Mathekga, an analyst and author of books on South African politics.
“This is the moment when SAA dies a natural death.”
Here's to hoping they get through this unhindered.
(Although, I wouldn't be surprised if they receive death threats OR a government bailout soon.)
 

skeptic_SA

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Unpossible. Only their drivers have pulled their race card. The staff should too. Get rid of all the dead weight, Vervoed era, lackies. Trim the ground staff and stewards to just the BEE component it can be. Change the name to Airline Of Black Excellence. Profit.
 

McT

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Liquidate and let's move along. There is no room for accommodating this with all the other financial obligations the government faces.
 

Hamster

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Imagine they closed SAA two or three bailouts ago and used the money to support the jobless for 6 months to find new work. Might've worked out better?
 

Zophos

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Imagine they closed SAA two or three bailouts ago and used the money to support the jobless for 6 months to find new work. Might've worked out better?
Whether you bailout an SOE or throw money at jobless people, it is still a waste of taxpayer's money.

I do understand that you meant the people that lost their jobs due to the lock down, but after this Shyteshow is over, we still need to restart businesses in order to create the jobs for the jobless.

Focus, in my opinion, should be on the SMEs and how to keep them from failing.
 

Datura

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Liquidate and let's move along. There is no room for accommodating this with all the other financial obligations the government faces.
Doesn't liquidation mean that none of the retrenched staff are entitled to severance?

EDIT: I should have read the article first

Liquidation would complicate the payment of severance packages.
 
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Hamster

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Whether you bailout an SOE or throw money at jobless people, it is still a waste of taxpayer's money.

I do understand that you meant the people that lost their jobs due to the lock down, but after this Shyteshow is over, we still need to restart businesses in order to create the jobs for the jobless.

Focus, in my opinion, should be on the SMEs and how to keep them from failing.
No, I meant close SAA and use all that bailout money to support the ex employees instead of trying to keep the company afloat.
 

Datura

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No, I meant close SAA and use all that bailout money to support the ex employees instead of trying to keep the company afloat.
I bet you even if they are offered this the unions will just want more. It will end badly for the staff either way...
 

system32

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Virgin Australia Denied bailout

Rahm Emanuel said "You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before."
Use Covid-19 to shutdown SAA and save taxpayer money which can better be used for health/education.
 
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NarrowBandFtw

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Imagine they closed SAA two or three bailouts ago and used the money to support the jobless for 6 months to find new work. Might've worked out better?
I dare not imagine such racist, counter revolutionary, colonial, white monopoly capital thinking comrade. Viva ANC, viva!
#Wakanda4eva
 

ForceFate

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Thousands of creditors owed billions of dollars by Virgin Australia will meet via video link today as social distancing measures introduced in response to the coronavirus pandemic forces the meeting to take place virtually.

Virgin Australia owes almost $7 billion to more than 12,000 creditors, its administrators Deloitte have disclosed, ahead of their first creditors' meeting at 11:00am.
 
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