SAA will need to upgrade fleet to compete outside Africa

ToxicBunny

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I'm speculating here. I'm assuming he's vocalising their turnaround strategy. They would not start an airline without some form of future plans.

Their turnaround strategy must first and foremost be focused on never needing a bailout ever again.

If they can't do that without a bailout to build a new fleet, then shut the fscking entity down nobody wants it anymore other than the politicians.
 

ToxicBunny

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To be fair they probably have a better chance of being profitable outside of SA because for foreigners they are just another airline. For local flyers, everyone in the country sees them for the tax black holde that they are and people will avoid flying them because of it.

Yeah I would tend to agree, but then if that is the case just shut it down. They have not got the capability of competing against the established international carriers like Emirates/BA/etc who have been running their businesses for decades and being successful.
 

Gaz{M}

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To be fair, now is a great time to lease new planes. There are many planes out there not being used due to Covid demand plummeting. So they should get a good lease deal on some new wings.
 

ToxicBunny

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To be fair, now is a great time to lease new planes. There are many planes out there not being used due to Covid demand plummeting. So they should get a good lease deal on some new wings.

If I was a leasing entity, I'd be very wary of leasing planes to an entity that has just left business rescue and could only do so because the government basically gave them the money. Its indicative of an entity that is unable to even vaguely float the business without significant and ongoing capital injections.

I would place a significant premium on the leasing contract purely to cover the risk that an entity like SAA poses.
 

ForceFate

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Took this dude a while to grasp the concept of they need new planes. Jeez, unreal. So the SA taxpayers going to fork out another R 50 Billion or so. You can't fix stupid.
Honestly, I don't think it took him long. Everyone knew SAA doesn't have planes of their own (they do but how many?).
 

ToxicBunny

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Honestly, I don't think it took him long. Everyone knew SAA doesn't have planes of their own (they do but how many?).

Technically they have 8 planes. 2 of which are apparently owned, the rest leased.
 

Kodi

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We've watched this rodeo so many times.... the outcome is certain failure - as certain as the next sunset..
 

Mystic Twilight

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Simple solution, don't compete outside Africa until you have shown that you can make a consistent year-on-year profit on African routes. Then use those profits to finance your fleet upgrades, or is this too much like running a sensible business?

It's too sensible, they need to pad their backpockets first before thinking about that.
 

grok

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Relax guys this is just their switch from gravy trains to gravy planes to keep the troughs flowing..
 

Corelli

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Actually SA-JNB is one of the most profitable routes. That and the SA to Washington & New York routes. There is profit to be made. And well during the pandemic many an airline cut us off. Which is why having a local airline is so good. Wish more SA pvt companies fly internationally.

And yes those A340s needs to be trashed. Its heavy on fuel.

Get the A350-1000 that Qatar Airways use. 2 engines compared to 4, 900 mile additional range, and less costly to maintain and run.

The route to India was great too, but pity the Guptas messed it up
 

Voicy

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I personally think SAA is a prisoner of geography.

South Africa isn't a hub. It's a destination. The reason BA, Qatar and Emirates are doing well is because their bases of operation are travel hotspots for catching connecting flights.

It's a tough one to solve...but the question is whether it needs to be solved at all. Wouldn't they do better by focussing on being the best solution for Africa instead of just being another airline to the rest of the world? Idk.
 

bwana

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SAA needs new planes

South African Airways will need a more modern fleet to be competitive on routes outside its home continent following the Covid-19 crisis, according to interim Chief Executive Officer Thomas Kgokolo.
Simple - stick to Africa. You're superfluous to needs as it is.

Actually SA-JNB is one of the most profitable routes.
Try again.
 
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neoprema

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Why is everyone assuming it will be tax money, weren't they bought by a private equity?

And they do need to compete, like any airline. And with post-pandemic travel set to soar, its a good time to be in a position to fill the market. I'll fly SAA anyday, i have no point to make, just travel.
 

CommonSense

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51% and funded by PIC, gov retains 49%

Exactly, from what I read the people who "boutght" them paid next to nothing of their own money.

It is basically a way to transfer a state asset to external parties who in future can make with the assets what they want.

A shady deal yet again.
 

ToxicBunny

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Why is everyone assuming it will be tax money, weren't they bought by a private equity?

And they do need to compete, like any airline. And with post-pandemic travel set to soar, its a good time to be in a position to fill the market. I'll fly SAA anyday, i have no point to make, just travel.

There are some serious questions about the source of funds for the private equity entity which have not been fully explored yet, it was very likely entirely funded by the PIC which is government funds still.
 
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