SAA get a bailout

[wesheltonj]

https://onemileatatime.com/south-african-airways-gets-another-bailout/

South African Airways Gets Another Bailout?!?!
MAY 20, 2020 BY BEN (LUCKY) 3
SOUTH AFRICAN AIRWAYS

In mid-April it was announced that South African Airways would begin liquidation proceedings, as the airline started laying off all staff. Well, that didn’t last long…

In this post:South African Airways gets bailout

• No one knows what’s going on with SAA anymore

• Bottom line

South African Airways gets bailout
It has today been announced that South African Airways will get a 3.8 billion ZAR (~211 million USD) bailout. This came as a meeting of South Africa’s public enterprises oversight committee decided to provide further funding to state-owned entities for the current fiscal year, which runs through March 2021.

Regional airline SA Express has also received 164 million ZAR (~9 million USD), intended primarily to counter liabilities from aircraft that are leased.

The problem is that there doesn’t actually seem to be a plan to go along with the additional funding. What exactly is this money supposed to be used towards?

No one knows what’s going on with SAA anymore
SAA has been a basket case for a long time — the airline has been losing money since 2011, and the government has provided just enough funding to keep the airline operating, but not enough funding or direction for anything to materially change. Obviously the COVID-19 pandemic has exacerbated the problems at the airline.


The airline entered business rescue as of December 2019, a procedure by which a practitioner takes control of the company, with the goal of maximizing the odds of survival, or at a minimum achieving a better return for creditors than if the company outright liquidates.

In mid-April the government was committed to cutting off SAA, and days later the airline prepared to liquidate and fire all staff… and then nothing happened.

The government’s plan was apparently to form a new national airline in South Africa, which would be separate from SAA, with the goal of making it financially viable.

But now SAA has just received some more funding, and nobody actually knows what’s going to happen anymore.

Bottom line
We’ll see what’s next for South African Airways, if anything. The airline is getting 200+ million USD, but that’s not actually enough to change anything in a material way.

I give up even trying to make sense of this. Heck, who am I kidding, I gave up on making sense of SAA a long time ago…

 

[markm]

https://onemileatatime.com/south-african-airways-gets-another-bailout/

South African Airways Gets Another Bailout?!?!
MAY 20, 2020 BY BEN (LUCKY) 3
SOUTH AFRICAN AIRWAYS

In mid-April it was announced that South African Airways would begin liquidation proceedings, as the airline started laying off all staff. Well, that didn’t last long…

In this post:South African Airways gets bailout

• No one knows what’s going on with SAA anymore

• Bottom line

South African Airways gets bailout
It has today been announced that South African Airways will get a 3.8 billion ZAR (~211 million USD) bailout. This came as a meeting of South Africa’s public enterprises oversight committee decided to provide further funding to state-owned entities for the current fiscal year, which runs through March 2021.

Regional airline SA Express has also received 164 million ZAR (~9 million USD), intended primarily to counter liabilities from aircraft that are leased.

The problem is that there doesn’t actually seem to be a plan to go along with the additional funding. What exactly is this money supposed to be used towards?

No one knows what’s going on with SAA anymore
SAA has been a basket case for a long time — the airline has been losing money since 2011, and the government has provided just enough funding to keep the airline operating, but not enough funding or direction for anything to materially change. Obviously the COVID-19 pandemic has exacerbated the problems at the airline.


The airline entered business rescue as of December 2019, a procedure by which a practitioner takes control of the company, with the goal of maximizing the odds of survival, or at a minimum achieving a better return for creditors than if the company outright liquidates.

In mid-April the government was committed to cutting off SAA, and days later the airline prepared to liquidate and fire all staff… and then nothing happened.

The government’s plan was apparently to form a new national airline in South Africa, which would be separate from SAA, with the goal of making it financially viable.

But now SAA has just received some more funding, and nobody actually knows what’s going to happen anymore.

Bottom line
We’ll see what’s next for South African Airways, if anything. The airline is getting 200+ million USD, but that’s not actually enough to change anything in a material way.

I give up even trying to make sense of this. Heck, who am I kidding, I gave up on making sense of SAA a long time ago…

Can't fix that situation.

 

[Kevin Peacocke]

I told you. SAA is as much a BEE platform and an employment vehicle as an airline, they can never let it close, it would be political suicide.

 

[Ryan]

BEE? Let's say I haven't memorized every acronym out there....

Anyway, I look at it in a weird positive way, if just for this year. If they are keeping it afloat then they intend on opening travel up to get tourist money back into the country. Maybe.

 

[VonJager]

BEE= black employment enterprise. Just a guess though.

 

[Kevin Peacocke]

Black economic empowerment

 

[Kevin Peacocke]

I have flown SAA for about 30 years, the last 20 quite heavily. It's really not a bad airline, just will never break even with all those staff. But hey, they get the job done, it is the way it is.

 

[SafariA]

I would not risk 5 pennies booking with them .....sorry suppose to be my airline but there is more than smoke ..... they got 3 times that not too long ago ... pretty soon the POT will be empty again ...

 

[Tanks]

As long as they keep flying I am fine. Between myself and the GF we have 2 local round trips and 1 international trip already paid for at the end of July and mid August.

 

[Adrian]

I'm glad they're still going....... for the time being.

They make it easy for us in the UK to get to Africa with firearms. Book in at Heathrow, collect in Windhoek, no need to change airlines, check in, check out etc, no worries about the onward carrier not taking firearms or losing them in the swap over.

They've always done me well and their pricing was favourable too despite last year having to pay to take firearms.

 

[Newboomer]

Hey, it's Africa. They have to employ all those blacks even if it means overstaffing by three times. As long as they get the job done and I can get to RSA I'm happy. SAA will never go away because it's State owned and too many bureaucrats would lose face if it did. Major embarrassment.

 

[SafariA]

Add the 3.6 this week to the total ..... This was a prime airline 25 years ago with a proud history .....

https://www.dailymaverick.co.za/art...uts-now-is-the-time-to-stop-this-madness/amp/

 

[SafariA]

Well maybe another R21BN down the drain .....

https://m.fin24.com/companies/indus...fcc-87cc-4dc7-88cd-1abdafb20919.1591023858958

 

[flatwater bill]

Add the 3.6 this week to the total ..... This was a prime airline 25 years ago with a proud history .....

Not the only business to have been built up, then slowly corrupted in the age of "New Apartheid"...On a broader note; it has become very difficult for RSA to entice any foreign investment because of the level of corruption. Best of luck to SAA.......I remember when it was a First World Airline..............FWB