South African Airways in "Business Rescue" as from 05 Dec 2019

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Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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sn26567 wrote: 09 Jun 2020, 23:03 SA Express escaped liquidation after a judge granted a three-month delay in liquidation proceedings, giving the government more time to clarify its plans for the domestic and regional carrier.
Public call for "Expression of Interest":
http://international.go-dove.com/en/eve ... iquidation

Requesting an Expression of Interest for either:
Sale of the business in its entirety as a going concern;
Investment as an equity partner;
Purchaser for part or all of the assets.

Major assets include:
Bombardier CRJ 200 jets;
Engines pare parts and rotables;
GSE, specialized tooling, workshop and support equipment;
Licenses (Operating, AMO, ATNS, ICASA etc), IT Infrastructure, and all other Intangible Assets Required to Operate and Airline in Southern Africa.

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sn26567
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by sn26567 »

South African Airways cleared another hurdle needed to ensure the state-owned carrier’s survival when most labour groups agreed to sweetened severance packages for retrenched workers.

South African Airways to reportedly send back 20 leased aircraft to their lessors, including six A320s, five A330-300s, one A330-200, and two A350-900s.
André
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Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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Passenger wrote: 11 May 2020, 22:39
sn26567 wrote: 11 May 2020, 21:59 South African Airways administrators will appeal a court ruling that ordered them to halt a layoff process.
The court ruled that the administrators had to present a business plan first, thus before officializing the retrenchment process. However, the judge also ruled that the administrators are allowed to negociate retrenchment agreements on a voluntary basis.

With SAA's history of ongoing losses, there is no way that the airline can survive with the same number of staff (crew, office, ground staff).
The Labour Appeal Court has confirmed the initial Labour Court verdict: SAA's business rescue practioners must provide a business plan before they offer retrench packs on a voluntary basis.

The longer the struggle takes, the higher the final bill will be for the SA taxpayer.


rwandan-flyer
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by rwandan-flyer »

Recovery plan:

2,700 job cuts
A loss of 349 million USD during the 3 years following the recovery plan
A fleet of 6 to start, until February 2021. Then increase to 19 medium-haul aircraft, will join SAA. 7 A350-900s, could be added in December 2021. The fleet will be 26 aircraft, against more than 50, before the Covid crisis19
The number of staff will increase from 1000 to 2900

The plan will be voted on July 14, 2020

https://www.ecofinagency.com/public-man ... -agreement
Last edited by sn26567 on 13 Jul 2020, 12:03, edited 1 time in total.
Reason: Corrected one date

globetrotter
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by globetrotter »

SA returned both 737-300F, ending freighter operations as well.

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sn26567
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by sn26567 »

South African Airways creditors approved a restructuring plan for the loss-making airline.
André
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Airbus330lover
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by Airbus330lover »

And a lot of planes flying to LFTW/FNI .
A333
ZS-SXI
ZS-SXK
A320
ZS-SZF
ZS-SZH

Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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sn26567 wrote: 14 Jul 2020, 18:08 South African Airways creditors approved a restructuring plan for the loss-making airline.
The business rescue practioners are about to withdraw their previous approval. One of conditions for the restructuring plan hasn't been fullfilled = a firm commitment from the government to supply the funds that are needed. The business rescue practioners have mentionned the exact amounts that they need, but the government only issued a letter of intent, without amounts.

A creditors meeting will be hold on Friday 24th July.. News24.com reports: "...The purpose of the meeting would be to determine that, if the outstanding condition is not fulfilled by 27 July 2020, the plan will be deemed "unimplementable" and a meeting of creditors will again be convened on 30 July 2020 for Creditors to consider amending the plan. The rescue practitioners say in a report that they are hopeful to receive the outstanding required "signed guarantee confirmation letter" prior to the meeting scheduled for 24 July 2020..."

https://www.news24.com/fin24/companies/ ... t-20200723

rwandan-flyer
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by rwandan-flyer »

SAA creditors vote in favour of deadline extension for outstanding condition


https://www.moneyweb.co.za/news/compani ... condition/

Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by Passenger »

It seems that the business rescue practioners have made an undisclosed deal with the South African government. A vague promise by the SA gov "we will provide the funds" is now accepted as proof of payment.

Notice (by the BRP's) to All Affected Persons (28 July 2020):
https://matusonassociates.co.za/wp-cont ... y-2020.pdf

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sn26567
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by sn26567 »

South Africa’s new national airline could launch as early as January 2021. The government is working with private sector investors for a restructured South African Airways, and has received “more than 10 unsolicited offers” to partner with the airline. Potential integrations of SAA could include subsidiaries SAA Technical and Mango.
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Matt
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by Matt »

sn26567 wrote: 24 Aug 2020, 22:22 South Africa’s new national airline could launch as early as January 2021. The government is working with private sector investors for a restructured South African Airways, and has received “more than 10 unsolicited offers” to partner with the airline. Potential integrations of SAA could include subsidiaries SAA Technical and Mango.
So basically same bullshit; different day...

Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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Matt wrote: 25 Aug 2020, 12:02
sn26567 wrote: 24 Aug 2020, 22:22 South Africa’s new national airline could launch as early as January 2021. The government is working with private sector investors for a restructured South African Airways, and has received “more than 10 unsolicited offers” to partner with the airline. Potential integrations of SAA could include subsidiaries SAA Technical and Mango.
So basically same bullshit; different day...
A quick guide "How to do business with South African Airways":
https://www.iol.co.za/news/politics/bus ... c0ed11a36e

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sn26567
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by sn26567 »

Ethiopian Airlines Group is among companies in talks with the government about potentially offering support to South African Airways. Taking a stake in the carrier is one of the options under discussion.
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Matt
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by Matt »

Passenger wrote: 28 Aug 2020, 13:09
Matt wrote: 25 Aug 2020, 12:02
sn26567 wrote: 24 Aug 2020, 22:22 South Africa’s new national airline could launch as early as January 2021. The government is working with private sector investors for a restructured South African Airways, and has received “more than 10 unsolicited offers” to partner with the airline. Potential integrations of SAA could include subsidiaries SAA Technical and Mango.
So basically same bullshit; different day...
A quick guide "How to do business with South African Airways":
https://www.iol.co.za/news/politics/bus ... c0ed11a36e

Dear lord. Bunch of fokkers man... how can you FORGET 25m rand is suddenly in your bank account... Bunch of fokking dof dronkies

I am so glad I am out of that country...

rwandan-flyer
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by rwandan-flyer »

sn26567 wrote: 03 Sep 2020, 20:47 Ethiopian Airlines Group is among companies in talks with the government about potentially offering support to South African Airways. Taking a stake in the carrier is one of the options under discussion.
Quite interesting. Few years ago, Ethiopian Airlines refused to merge with South African Airways and Kenya Airways. It's probably time to get a real partnership between 2 big Africans airlines. https://centreforaviation.com/analysis/ ... nity-89947

I repeat but, African airlines should more work between them, create their own airlines alliance instead of to sign "big" paterneships with UE (Air France, KLM or Brussels Airlines) or Middle East airlines (Emirates or Qatar Airways)

Foreign airlines are always the biggest winner. Foreign airlines account for 80% passengers traffic in Africa: https://atqnews.com/foreign-airlines-ac ... in-africa/

It's not normal for someone who flies from Rwanda to Gambia, has to make a stop at Brussels,with Brussels Airlines, because the journey in Africa is too long (too many stops, with sometimes 3 different airlines) and too expensive.

Africa needs of an African LATAM, but African Aviation needs major reforms and Africans politicians have to put their ego aside

Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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Update 10th September:

The Business Rescue Practitioners (BRP’s) have terminated 33 of the 40 aircraft lease contracts.

The SA State has already refunded R9,3B (469M EUR) to the banks for which Treasury had issued a state guarantee on behalf of SAA.

R7,1B (357M EUR) of creditors' invoices is still outstanding. The SA government, as sole owner of SAA, had promised earlier to settle this.

R10,1B (509M EUR) needed for the restart isn’t paid yet to the BRP’s. This includes the cost of fleet reducement, the cost of the severances packages for the 3,000 employees, and the cost of the restart in January 2021.

The BRP’s have now given the SA government a deadline for payment of these 2 amounts: 17th September. A creditors meeting is already planned for 18th September, if the SA government fails to submit the money.

Source - more info in this pdf:
https://matusonassociates.co.za/wp-cont ... ns-1-1.pdf

Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by Passenger »

Passenger wrote: 12 Sep 2020, 16:17 Update 10th September:

The Business Rescue Practitioners (BRP’s) have terminated 33 of the 40 aircraft lease contracts.

The SA State has already refunded R9,3B (469M EUR) to the banks for which Treasury had issued a state guarantee on behalf of SAA.

R7,1B (357M EUR) of creditors' invoices is still outstanding. The SA government, as sole owner of SAA, had promised earlier to settle this.

R10,1B (509M EUR) needed for the restart isn’t paid yet to the BRP’s. This includes the cost of fleet reducement, the cost of the severances packages for the 3,000 employees, and the cost of the restart in January 2021.

The BRP’s have now given the SA government a deadline for payment of these 2 amounts: 17th September. A creditors meeting is already planned for 18th September, if the SA government fails to submit the money.

Source - more info in this pdf:
https://matusonassociates.co.za/wp-cont ... ns-1-1.pdf
The SA Government failed to realize the payment it has promised, so tomorrows creditors meeting is confirmed:
https://matusonassociates.co.za/wp-cont ... r-2020.pdf

Passenger
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

Post by Passenger »

Another unbelievable story: SAA Technical, a SAA subsidiary, wants to suspend its services to SAA and to Mango (SAA's low budget airline) due to unpaid debts.
https://www.businessinsider.co.za/trave ... tum-2020-9

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