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South African Airways is said to consider share sale for cash

BBSA

Executive Member
Joined
Jul 11, 2005
Messages
9,686
#1
South African Airways could sell shares to the public as the state-owned carrier seeks ways to end years of losses and reduce the need for bailouts, according to people familiar with the matter.

The move would enable the government to cut its stake in much the same way as it did with former phone monopoly Telkom SA, almost two decades ago, said the people, who asked not to be named as the information is not public. However, the carrier would first need to make progress with a turnaround plan designed to reach break-even in three years, they said.

While the sale of a stake to an equity partner has been aired repeatedly over the years, this is the first time it’s been suggested that SAA should list on a stock-exchange. Pretoria-based Telkom’s initial public offering in 2003 raised almost $500m and the government’s shareholding is now just under 40%.

https://m.fin24.com/Economy/south-african-airways-is-said-to-consider-share-sale-for-cash-20181109
 
Joined
Jul 5, 2009
Messages
4,060
#5
The last paragraph of the article has a prophetic feel:

SAA has had an equity partner before. The government sold 20% of the carrier in 1999 to Swissair, which pioneered the concept of an alliance anchored via minority stakes, only to buy the shares back in 2002 when the European carrier went bankrupt.
 
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BBSA

Executive Member
Joined
Jul 11, 2005
Messages
9,686
#7
Swiss air went bankrupt in 2002, that date can't be right. I had a trip with them in 2003 or there about.
Swissair and the SAirGroup were handed over to the liquidation firm of Jürg Hoss Liquidators, and ceased operations on 31 March 2002. Crossair was renamed Swiss International Air Lines, or Swiss for short, and took over Swissair's intercontinental routes on 1 April 2002, officially ending 71 years of Swissair Service.

https://en.m.wikipedia.org/wiki/Swissair
 
Joined
Oct 6, 2010
Messages
10,007
#8
South African Airways could sell shares to the public as the state-owned carrier seeks ways to end years of losses and reduce the need for bailouts, according to people familiar with the matter.

The move would enable the government to cut its stake in much the same way as it did with former phone monopoly Telkom SA, almost two decades ago, said the people, who asked not to be named as the information is not public. However, the carrier would first need to make progress with a turnaround plan designed to reach break-even in three years, they said.

While the sale of a stake to an equity partner has been aired repeatedly over the years, this is the first time it’s been suggested that SAA should list on a stock-exchange. Pretoria-based Telkom’s initial public offering in 2003 raised almost $500m and the government’s shareholding is now just under 40%.

https://m.fin24.com/Economy/south-african-airways-is-said-to-consider-share-sale-for-cash-20181109
Absolutely refusing to kick that feeding trough over.....
 

Visser

Expert Member
Joined
Apr 13, 2010
Messages
1,461
#11
Yep, I suspect this is all just talk in an attempt to show Moodys that they are 'tackling' the problem in an attempt to prevent a downgrade. Not sure how long they will get away with this though.
 
Joined
Apr 8, 2006
Messages
72,360
#12
Yep, I suspect this is all just talk in an attempt to show Moodys that they are 'tackling' the problem in an attempt to prevent a downgrade. Not sure how long they will get away with this though.
Yeah again talking about things you know nothing of...

Talk like this won't fool moodys at all. Saa is not in a state to list on any stock exchange and no investor with even half a brain cell would put money into the entity in its current state.
 

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
11,572
#13
Yep, I suspect this is all just talk in an attempt to show Moodys that they are 'tackling' the problem in an attempt to prevent a downgrade. Not sure how long they will get away with this though.
Don't you think basing their decisions on news reports would ruin them? Who would trust them?

Imagine they were reading Sunday Times all these years:)
 

Cr419

Executive Member
Joined
Feb 22, 2016
Messages
6,141
#14
Swissair and the SAirGroup were handed over to the liquidation firm of Jürg Hoss Liquidators, and ceased operations on 31 March 2002. Crossair was renamed Swiss International Air Lines, or Swiss for short, and took over Swissair's intercontinental routes on 1 April 2002, officially ending 71 years of Swissair Service.

https://en.m.wikipedia.org/wiki/Swissair
You right, I flew with Swiss international not Swiss Air.
 
Joined
Jul 5, 2009
Messages
4,060
#15
You right, I flew with Swiss international not Swiss Air.
Your comment emphasizes the point that bankruptcy is not the end point for an airline, it is a step in the rationalisation process. The assets, landing-slots, brand and goodwill can be sold to another entity, and a new streamlined operation can be set up. The same should apply here, but politics gets in the way with any SOE...

Some light reading: https://en.wikipedia.org/wiki/List_of_defunct_airlines

Due to the size of the list it has been broken down into:
List of defunct airlines of Africa
List of defunct airlines of the Americas
List of defunct airlines of Asia
List of defunct airlines of Europe
List of defunct airlines of Oceania
 
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