Posts tagged with 'airline'

 

SAA’s wings cut – bankrupt SOE can only pay salaries in January

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The bankrupt, state-owned SAA airline company will manage to pay its staff salaries for January, but that’s where it all ends.

With a bankrupt government failing to fulfill its pledge to pump another R2bn into the soe, it looks as if SAL will not remain standing.

The airfreight company faces three serious problems, and the solutions to this are vague and unclear, as different measures could not create a better situation.

The SAA needs at least R2bn to get its planes up, but with the many cancellations it has had to announce, its passengers are becoming less and less and profitability is becoming almost impossible.

The government’s inability to borrow R2 billion from any banker in the country has failed, which is now seen as a vote of no confidence in the financial approaches the regime is following.

It can inflict a final blow.

The large number of workers who should never have been hired is another reason why the
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Cash-strapped SAA cancels 38 domestic and international flights

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SAA has confirmed its cancellation of 38 domestic and international flights between OR Tambo International Airport and Cape Town, as well as between Johannesburg and Durban’s King Shaka airports.

In a statement, the airline said: “These decisions are in line with SAA’s usual policy of reviewing flights and consolidating services with low demand. Furthermore, during the current process of business rescue, these cancellations represent a responsible strategy to conserve cash and optimise the airline’s position ahead of any further capital investment.”

The airline said it would be reviewing further schedule amendments over the coming days and would communicate any operational changes to its customers.

Those who have already booked the cancelled flights will be re-accommodated on alternative services including Mango.

Below is a list of all the cancelled flights:

The following domestic flights operated by SAA have been cancell
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SAA director resigns from his post amid crisis at state entity

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SAA director Martin Kingston resigned from his post, and the move was welcomed by the communist-minded Numsa union as well as the trade union Sacca.

The two unions also said the rest of SAA directors should follow Kingston’s example and submit their resignations.

Kingston’s resignation comes after Bloomberg said in his report there is no reason why the director should be on the board.

Kingston apparently decided to resign when the company was placed under rescue because of the extremely poor results being delivered.

The shipping company is still waiting for Treasury to pay the promised R2bn earmarked to keep SAA afloat and is the second part of the R4bn initially promised to the shipping company by the government.

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SAA pilots willing to strike to ‘save’ national airline – will be a first in its 80-year existence

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SAA pilots said on Thursday they were willing to go on strike, if necessary, unless “critical operational and technical deficiencies” were addressed. The Pilots Association has begun the process of recruiting among its members to determine how they think about the possibility of strikes. SAA has a history that its pilots will not go on strike, and to date they will only consider it as a last possibility. This possible strike will be a first in its 80-year existence.

The investigation and poll started by an independent service provider asked each pilot what they thought about a possible strike and the need to turn around in the struggling airline. Of the 635 SAA pilots, 516 (81%) participated in the survey, and 91% believe that the management team is pathetic. About 96% are in favor of having pressure to improve the shipping company’s conditions.

“It needs to be understood that the decision to embark on industrial action is not one that
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How much taxpayers money has been thrown into SAA’s black hole to stay afloat?

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Billions and billions have been thrown at The South African Airways (SAA), but the airline don’t have much to show for it. It’s hard to recall a time when the limpest of all our state-owned entities was successful on its own two feet.  It has a history of relying on fiscal interventions, needing contributions from both private firms and the taxpayer just to stay airborne.  Over the last 20 years, their borrowing has been obscene, merely a few days ago the board has requested yet another  additional R4 billion to stay afloat this financial year.

According to a SAA spokesperson the company requested the R4 billion bailout as it has been operating at a loss since 2011. The entity needs has approximately R450 million a month  to keep operations running. The airline’s generated revenue of R30.4bn in 2016-17 while operating costs amounted to R30.9bn. Finance costs totalled R835m and the operating loss was R533m. The losses have continued into
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Struggling airline under ANC control is apparently under extremely difficult financial circumstances and will now be rescued by commercial banks – This is the result of corruption and incompetence, celebrated in the ANC ranks

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South African commercial banks are basically prepared to help the instable SA Airways with R3.5bn as a lifeline.

The struggling airline needs the funds very urgently to meet his short-term obligations.

SAA’s Chief Executive Officer, Vuyani Jarana, says the amount is needed to maintain its operational duties until April.

Jarana, says it is clear that SAA is under “extremely difficult circumstances” and will not continue to function without the huge loan.

Meanwhile, ANC’s Cyril Ramaphosa, during his visit to India, said the SAA’s flights to the country should resume as well as the flights to the Emirates that were “stolen” from the SAA shipping company.

Read the original article in Afrikaans on Die Vryburger
This report does not necessarily reflects the opinion of SA-news.

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Desperate times calls for desperate measures, but is this the right thing to do? After all financial losses occurred due to incompetence, negligence and corruption – SAA is borrowing R3.5bn from local banks

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South African Airways (SAA) received a R3.5bn loan to keep it going until the end of March.

This forms part of the R21,7 billion SA management believes is needs to make its turnaround strategy succeed.

SAA spokesperson Tlali Tlali confirmed the R3,5bn was received from local banks.

This comes after National Treasury gave R5bn to SAA in October last year to repay debt.

According to Tlali, SAA will not be profitable before 2021, but plans are on track to save the state-run airline from its money pen.

SA’s acting chief financial officer Deon Fredericks said in November that the airline needed the R3.5bn by March. According to Fredericks, SAA will suffer a R5.2bn loss in the current financial year to end-March, and a loss of R1.9bn in 2019-2020. However, SAA management has already warned the rise in oil prices could hamper its expected timetable for a return to profitability.

According to Tlali, SAA’s route between J
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