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

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

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South African Airways may sell its two prized nighttime slots at London Heathrow as the state-owned carrier battles to stave off financial collapse.

South Africa’s Treasury’s says the government refused to provide guarantees to South African Airways due to the airline’s inability to finalize financial statements on an ongoing basis.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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SA Express enters into the Business Rescue process to ensure the long term sustainability of the airline. All operations to continue as normal.
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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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TLspotting wrote:
14 Feb 2020, 20:24
SA Express enters into the Business Rescue process to ensure the long term sustainability of the airline. All operations to continue as normal.
SAA went into Business Rescue by decision of their own Board.
SA Express was put into Business Rescue by decision of the Johannesburg High Court, on request by Ziegler (logistics) because of unpaid bills.

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

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South Africa government set aside US$1.1 billion for South African Airways. after the company was placed under voluntary business rescue in December 2019.
André
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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Passenger wrote:
22 Dec 2019, 00:52
TLspotting wrote:
21 Dec 2019, 21:09
South African Airways has a reasonable chance of being saved, according to turnaround specialist Les Matuson, who was appointed to try and pull the state-run carrier back from the brink of collapse.
The deadline for the Business rescue plan is indeed extended until 29th February 2020.
And yes, there is a "reasonable chance" that SAA will be saved. Just like there is a "reasonable chance" that the business rescue practiziser will finally conclude that debts from the past and the current salary bill don't allow a long term solution.
The majority of creditors have accepted a new deadline for the publication of the business rescue practitioners' plan to save SAA from liquidation. New publication date is 31st of March.

(source: news24.com)

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

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South African Airways is evaluating four outcomes, according to a draft business rescue plan, which includes a complete liquidation as well as a transfer of all assets to subsidiary Mango.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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SAA has begun consultation process for job cuts.

South Africa government has expressed concern over plans to halt SA Express flights, after business rescue practitioners presented “wholly inadequate” plan to turn the airline around.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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TLspotting wrote:
10 Mar 2020, 20:04
South Africa government has expressed concern over plans to halt SA Express flights, after business rescue practitioners presented “wholly inadequate” plan to turn the airline around.
The above statement from the South African government is contradicted by the business rescue practisers. The BRP's were appointed by the Johannesburg High Court, against the will of the government (sole owner of SAX).

These articles, with free access, make clear what is really going on:

8th March 2020:
https://www.dailymaverick.co.za/article ... a-express/

10th March 2020:
https://www.dailymaverick.co.za/article ... e-airline/

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

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FlySafair interested in buying Mango, lowcost arm of SAA.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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Last Friday, the business rescue practitioners have asked for a third extension of the deadline - now for an aditional two months. Reason: corona.
https://www.fin24.com/Companies/Industr ... n-20200322

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

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SAA's international flights are grounded - and this leads to renewed calls to put SAA out of its misery:
https://city-press.news24.com/Business/ ... y-20200324

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

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On Friday, Moody's has downgraded South Africa to junk. As a result, the ZAR (Rand) jumped to its lowest exchange rate ever (now EUR/ZAR R19,64 and USD/ZAR 17,48).

At such rates and with a cash drain for the next months, there is no way that SAA can afford to pay the leases for it's aircraft, like the brand new 4 A350-900's. Dit maak my baie hartseer, but it's time now for the Business Rescue Practisers to tell the relatives that the lung heart ventilator will be switched off.

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

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fin24.com/news24.com reports that, on 2nd April 2020, the Business Rescue Practitioners have asked the South African government for another 10 billion ZAR hard cash (some 500M EUR). The SA government declined the request.

The BRPs told Fin24 that they were "currently assessing" the impact of the latest development on the business rescue process and would communicate any decisions in due course.

https://www.fin24.com/Companies/Industr ... t-20200414

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

Post by Matt »

SAA is looking to fire all staff and paying them 3 months for x amount of years worked and are looking to sell all their assets.

https://www.bloomberg.com/news/articles ... -workforce

Ach man. This hurts me a lot. It's for kotsen. I always liked flying SAA, getting my first Simba chips already on board, having some nice Schweppes Lemonade... And the food was always not too bad either...

After 89 years, the curtain falls over SAA so it seems...

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

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SAA to be replaced by a new flag carrier.
SA Express in provisional liquidation.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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TLspotting wrote:
28 Apr 2020, 19:21
SA Express in provisional liquidation.
Indeed: the court has accepted the proposal by the business rescue practitioners to liquidate SA Express, but the proceedings are put on hold till the term to protest the verdict has passed:
https://www.fin24.com/Companies/Industr ... d-20200428

TLspotting wrote:
28 Apr 2020, 19:21
SAA to be replaced by a new flag carrier.
Strange news you have. The business rescue practitioners have given all SAA staff till 1st May to accept or decline a farewell package:
https://www.fin24.com/Companies/Industr ... d-20200425
and
https://www.fin24.com/Companies/Industr ... e-20200426

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

Post by TLspotting »

Passenger wrote:
28 Apr 2020, 19:51
TLspotting wrote:
28 Apr 2020, 19:21
SAA to be replaced by a new flag carrier.
Strange news you have. The business rescue practitioners have given all SAA staff till 1st May to accept or decline a farewell package:
https://www.fin24.com/Companies/Industr ... d-20200425
and
https://www.fin24.com/Companies/Industr ... e-20200426
If it goes down I guess.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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South African Airways unions had constructive discussions with the government on ensuring the continued existence of troubled national carrier and SA Express.
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Re: South African Airways in "Business Rescue" as from 05 Dec 2019

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The South African Department of Public Enterprises (which is SAA's parent company) has just issued a very strange press release. Not only their statement contradicts with the plans from the (officially apppointed) business rescue practioner - they also state explicit that three non South African private companies "are struggling to survive" (Boeing, BA, Virgin). Governments should withhold from such rumours.

Lesson to be learned: don't publish media statements when you have enjoyed a 1st May free liquor party.
https://www.gov.za/speeches/public-ente ... -2020-0000

Department of Public Enterprises, 1 May 2020

SAA Leadership Compact, a ground breaking initiative

Extraordinary times call for extraordinary measures. The challenges facing South African Airways has required the Leadership of the all stakeholders to rise above the crisis created by both the weaknesses within SAA and COVID 19, and agree on a long-term vision and strategy to mitigate the impact on employees, tourism, the aviation industry more broadly and become a catalyst for economic development and job creation. This requires an absolute focus on becoming internationally competitive for safety, quality, and cost. It will not be the old SAA but the beginning of a new journey to a new restructured airline, which will be a proud flagship for South Africa.

The process that the Minister and SAA workers have embarked upon is bold and audacious. A Leadership Compact has been signed by all parties that commits to taking a new approach, to acknowledging that there will be a major performance-based culture change for all leadership, management and employees as the transition to a new airline takes place.

In the Past, the airline industry has been able to navigate its way through many difficult periods based on the known facts relating to the market, socio-economic, financial, skills and related issues. Now within months we have seen a virtual global collapse of the airline industry. Who would have foreseen that the giants of the industry such as Boeing, British Airways and Virgin would be struggling to survive and retrenching thousands of employees. We are now faced with the unknown post the COVID-19 pandemic and there is no precedent or certainty which can be followed in developing a new strategy. The parties will be pioneers in writing a new book.

Now, with the Covid-19 storm surging around us and the fog of economic uncertainty descending, a new and bold approach is required if there is to be any chance that South Africa can retain vital airlift capacity and trade connections, through a strategic national asset, with both public and private sector participation, which is internationally competitive, viable, sustainable and profitable.

Moving forward, and looking to the future, the Minister has established very demanding timelines for the development of the Business Rescue Plan and parameters in order to determine what path the old SAA could follow. The transition to the new airline may require sacrifices, pain and hardships for all concerned, particularly for those employees who may be displaced. The Leadership Forum recognise that they have a responsibility to mitigate these challenges through a range of measures including but not limited to, preferential reemployment, reskilling and enterprise development opportunities.

Unions and the Department are working together on a business model that deals with what a new national carrier of the future will be but also crucially how this can be achieved to ensure a competitive edge in safety, quality and costs in the sectors which SAA competes.

The agreed intention is to produce an airline which is a catalyst for investment, job creation in key sectors, economic growth throughout all regions of the country and is a mirror to the world reflecting the splendour and beauty of our great nation. And to do so by designing an airline that will be funded through a variety of options such as strategic equity partners, funders and the sale of non-core assets and the parties are still of the view that the state must continue to play a role.

The creation of a new, dynamic airline, with the correct corporate structure, led by skilled, competent and experienced management and staffed at competitive and benchmarked rates will allow for the new SAA to compete in the post Covid-19 world.

Airlines around the world are failing, but with the correct vision, leadership, business and operating model, funding and implementation the new national carrier will be well positioned to take to the skies again and contribute to the South African and African economy.

The shareholders and Union leadership recognise that there are going to be serious challenges to overcome. However, It is essential to build a leadership coalition which is robust and strong enough to find solutions, and establish the foundations of a new airline with a growth path in this uncertain environment, which are in the best interest of our nation and all its citizens.

For media enquiries contact Richard Mantu 072 488 1520.
Issued by: Department of Public Enterprises

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

Post by Matt »

Passenger wrote:
01 May 2020, 23:44
The South African Department of Public Enterprises (which is SAA's parent company) has just issued a very strange press release. Not only their statement contradicts with the plans from the (officially apppointed) business rescue practioner - they also state explicit that three non South African private companies "are struggling to survive" (Boeing, BA, Virgin). Governments should withhold from such rumours.

Lesson to be learned: don't publish media statements when you have enjoyed a 1st May free liquor party.
:lol: :lol: :lol:

In all seriousness tough, this article is still quite ok.

Although they have no idea what they are talking about. But that is often the case in SA state departments. Bunch of domkop.

A 'new SAA' will go bankrupt again. And again, and again. There is no decent leadership inside the current ANC.

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