What government's business rescue plan means for SAA

Jamie McKane

MyBroadband Journalist
Staff member
Super Moderator
Joined
Mar 2, 2016
Messages
6,169
What government's business rescue plan means for SAA

Following the announcement that South African Airways (SAA) would be placed into business rescue, Public Enterprises Minister Pravin Gordhan has expanded on the government's plan to save the failing airline.

Gordhan said that since his announcement on Sunday that SAA must undergo a radical restructuring, the airline's board had taken the decision to place the company into business rescue.
 

Jopie Fourie

Expert Member
Joined
Aug 30, 2019
Messages
2,251
The majority of the bailout money will go directly towards creditors. A number of future bailouts too. No creditor will lose any money in this arrangement. Very little of this bailout money will go towards running the SAA. In fact, expect a jobs bloodbath and huge decline in operations real soon.
 

BBSA

Honorary Master
Joined
Jul 11, 2005
Messages
14,664
Treasury providing the airline with another R2 billion, but it is not a bailout o_O
 
  • Like
Reactions: ES1

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
24,065
The majority of the bailout money will go directly towards creditors. A number of future bailouts too. No creditor will lose any money in this arrangement. Very little of this bailout money will go towards running the SAA. In fact, expect a jobs bloodbath and huge decline in operations real soon.
I called it. But creditors won't be paid immediately. Business rescue is like State of Emergency, where certain freedoms are suspended for a certain duration. Of course this is oversimplification but there are similarities.
 

Jopie Fourie

Expert Member
Joined
Aug 30, 2019
Messages
2,251
I called it. But creditors won't be paid immediately. Business rescue is like State of Emergency, where certain freedoms are suspended for a certain duration. Of course this is oversimplification but there are similarities.
This was always going to be the case. There is not a way the government can get rid of the creditors. They will settle all the lenders over the next coming years in a large number of bailouts, whether the SAA still flies by then or not. I am 100% convinced that not a single creditor will allow the SAA to continue operations.

Over and above this, even if they miraculously keeps SAA alive, you can rest assured that they will never get a cent borrowed to them ever again by the private sector.
 
  • Like
Reactions: ES1

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
24,065
This was always going to be the case. There is not a way the government can get rid of the creditors. They will settle all the lenders over the next coming years in a large number of bailouts, whether the SAA still flies by then or not. I am 100% convinced that not a single creditor will allow the SAA to continue operations.
No one has challenged anything in court yet, and if they accept SAA's business rescue plan, the airline will continue operating. I doubt government will voluntarily close the airline. This is the good time for them to restructure the airline as planned. This is all layman's opinion and carries no weight whatsoever.
 

The Free Radical

Senior Member
Joined
Apr 6, 2017
Messages
834
SAA needs to be boycotted by all travellers as a moral and ethical campaign like the Zuma Must Fall campaign.

Cast your vote of no confidence in SAA by boycotting them so this madness can STOP!

The ANC is being cruel to our poor by continuing to shift over hard earned taxes from basic service delivery to an extravagance primarily used by overpaid parliamentarians to fly, skoff and dop for free.
 
Last edited:
  • Like
Reactions: ES1

CeeBee

Expert Member
Joined
Jul 27, 2006
Messages
2,234
all it means is more tax money pizzed down the black hole.
will likely not be the last either, until gov can grow the balls to do the right thing for the whole of ZA taxpayers, and economy and not keep bending over to the unions
 
  • Like
Reactions: ES1

rodmur

Well-Known Member
Joined
Mar 13, 2007
Messages
254
What government's business rescue plan means for SAA

Following the announcement that South African Airways (SAA) would be placed into business rescue, Public Enterprises Minister Pravin Gordhan has expanded on the government's plan to save the failing airline.

Gordhan said that since his announcement on Sunday that SAA must undergo a radical restructuring, the airline's board had taken the decision to place the company into business rescue.
WRONG. When push came to shove Gordhan and Ramaphosa fell as expected. It should have been declared bankrupt. Instead they continue to feed it our money. The Unions have won again
 

grok

Honorary Master
Joined
Dec 20, 2007
Messages
21,678
all it means is more tax money pizzed down the black hole.
will likely not be the last either, until gov can grow the balls to do the right thing for the whole of ZA taxpayers, and economy and not keep bending over to the unions
This government cannot grow anything, not even if they wanted to.
 
Top