SAA cuts domestic flight routes to one

As of February 29, a large number of domestic and international routes will be closed, as SAA positions itself for a more profitable future.
Business rescue practitioners say no further changes will be made to routes. Image: Waldo Swiegers, Bloomberg

South African Airways (SAA) business rescue practitioners have taken the urgent decision to cancel all domestic flight routes, barring limited services between Johannesburg and Cape Town. This is part of its initiatives to create a more sustainable business as the airline undergoes a rehabilitation process. 

From February 29, all SAA flights to other local destinations – including Durban, East London and Port Elizabeth – will be cancelled, however Mango will continue to operate. 

The move comes ahead of the relase of the business rescue plan, which practitioners Les Matusaon and Siviwe Dongwana will publish later in February. The plan should outline a comprehensive restructuring programme, after over two months of consultation with industry specialists, government, creditors and executive management. 

In line with SAA’s commitment to take urgent action to conserve cash, and create a viable platform for a successful future, key measures need to be implemented now,” said the practitioners in a joint statement on Thursday.

“These measures include targeted changes to the route network, deployment of more fuel-efficient aircraft, optimisation of organisational structures and renegotiation of key contracts with suppliers.”

Regional and international routes will also be affected, with SAA closing routes from Johannesburg to Abidjan via Accra; Entebbe; Guangzhou; Hong Kong; Livingston; Luanda; Munich; Ndola; and Sao Paulo by the end of February.

“SAA will continue to operate all international services between Johannesburg and Frankfurt, London Heathrow, New York, Perth and Washington via Accra,” said the practitioners.

Regional services that will be retained include flights from Johannesburg to Blantyre, Dar es Salaam, Harare, Kinshasa, Lagos, Lilongwe, Lusaka, Maputo, Mauritius, Nairobi, Victoria Falls and Windhoek.

“All customers booked on any cancelled international and regional routes will receive a full refund. Customers booked on cancelled domestic flights will be re-accommodated on services operated by Mango.”

The practitioners said the airline will not be making further network changes and “passengers and travel agents can, therefore, feel confident about booking future travel with South African Airways”.

Read:

SA Express to appeal business rescue judgement
SAA plans to accelerate jobs cuts, union says

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

AUTHOR PROFILE

COMMENTS   32

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

Cancel all flights. Save even more money.

Agreed. Everyone reading this has a moral duty NOT to fly SAA, so the blood-sucking vampire that will not die can finally be slain.

I am just waiting for them to say:

“Here is another great idea; we will use the pensions again to fund the liquidity crises of SA” … as soon as the BRP leave.

I meant; SAA

Stopped using them in 2010. Hope they sink very rapidly now any more SOE’s to follow including the elephant in the room

“Regional and international routes will also be affected, with SAA closing routes from Johannesburg to Abidjan via Accra; Entebbe; Guangzhou; Hong Kong; Livingston; Luanda; Munich; Ndola; and Sao Paulo by the end of February“

That should read “Livingstone”

Reminds me of a visit to Zimbabwe ~20 years ago. We were at Victoria Falls and walked past a Bata shoe store near a Wimpy. The store was open but had no stock. So the shelves were full of cardboard cut outs of shoes but not a single real shoe in the whole store. Mugabe had made it unlawful to close a store even if you had no stock.

De ja vu. Coming to our country very soon.

Beautiful description of the stupidity of socialism. They claim to serve the consumer, but in reality they only serve themselves.

@Sensei: about 4 years ago we drove from Tom Burke to Swartwater and then on to Alldays to visit family. The road was so bad we had to drive on the shoulder with my 4baai4. About 4 km from Swartwater (also known as Aqua Noir in die bosveld) we saw a road crew putting up sings “Potholes”. I had time on my hands so I pulled over (i.e. from the shoulder onto the road) and chatted with the road crew. I wanted to know why the potholes were not being fixed.

The guy in charge was perplexed and his buddies looked away from me, embarrassed by this stupid man with a big truck.” But sir” he said “we have put up the signs”.

And this is the way voters are being bamboozled by the ANC. Talk is cheap, money buys the whiskey.

Well Mango is SAA in disguise anyway !
Nobody other than ANC Cadres want to fly SAA Anyway : Just Shut the Thing Down : No Profits are a hell of a lot better than Massive Losses :
Please God dont let the Govt try and start a Shipping Line now !!!
Clueless Cadres !

Resurrecting the dead? SAA is already a zombie airline. Just pull the plug already.

Nobody can resuscitate a corpse

Hulle kan in net een rigting vlieg, en dis in hulle moer in! Hulle moet net eers die hele Luthuli Huis in laai.

Lol

And 5 minutes ago they were telling the public to be patriotic and book with SAA ?
All down in true ANC style.
Strange but true.

the 5 minutes ago promotion was just another way of getting a 30day cash inflow – not thinking it has to be refunded to the ticket buyer – or are they so naive to think it is a donation to saa dire straight financial position????

You quite right it was “Comrade” Gordhan’s remarks

Here are some of them

“Gordhan on Sunday said it was the “collective responsibility as South Africans to support SAA in its efforts to restore sales confidence among its customer base and rebuild revenues in the shortest possible time”.Dec ‘19

Our responsibility to save a Parastatal that was raped, looted, mismanaged, and flown into the ground, nose dive style!
Who does he think he is telling us how to spend our money and where when all his Government does is steal our it, month by month, year by year.
The next thing he will start selling shares in Eskom,SAPO,Transnet,Denel,SAA and insist it’s South Africans “collective responsibility” to support bankrupt Parastatals. And i truly thought Comrade Gordhan was one if the few more intelligent Politicians. He’s proved me wrong

“The government will repay loss-making SAA’s outstanding government-guaranteed debt of R9.2bn ($620m) over the next three years, the National Treasury said in the medium-term budget policy statement in October. Lenders are demanding a firm repayment plan as a condition for agreeing to extend more funding, SAA has said” Nov ‘19

Our Tax Money, stolen from us to subsidize the lavish lifestyle of the corrupt Elie

Hope Flysafair takes more slots in those cities and get better deals!

Yahoo!!!

Its all ok now unions and SAA, it won’t be much longer now…… soon it will all be over

i stick to it, the business rescue plan is just a waist of time and a delay of a fatally ill patient – pull the plugs, switch of the oxygen supply and switch off the last light in the building if any is still working – if saa is losing / wasting / burning R50 million per month the quicker it is fully liquidated the better.

same with eskom which needs a very heavy personnel trim / pruning

according to the Unions the current bail out money will only last until end of March anyway……then its game over.

Now, can all those who contributed to the downfall of SAA, Myeni, Zuma, etc, be locked up, prosecuted and the Assett Forfeiture Unit do its work?
Why do white collar criminals always get away with their crimes?

And as comment no. 20, lets remember the majority South Africans get exactly what they deserve for keeping the ANC in power – a bankrupt state and state enterprises, corruption, shameful public services, dysfunctional municipalities, terrible educational system, very high unemployment, disinvestment, crime and lawlessness, disintegrating medical services, escalating unaffordable prices of daily goods, poor living conditions and communities, etc. But there’s the grant system and bloated government employment albeit without efficient output. S.A. walking the Zim road whether the comrades acknowledge it or not.

South Africa’s geographic isolation means that it needs to have a link to the rest of the world that isn’t at the mercy of the market, or foreign governments (Ethiopia, UAE). Winding up SAA will also mean losing a lot of technical local expertise that will take years to rebuild, if ever.

That said, SAA does need to be thoroughly and completely fixed, and a permanent block on money-grubbing cadres infiltrating it’s management needs to be introduced.

I always wanted to apply the remark (below) in a practical sense:

SAA is saving themselves bankrupt.

There, I said it :-). Mooi man

……..also sounds like ESKOM: they want us to by as little of their product as possible 😉 baie mooi man!!!!

sorry Koos, I wanted to add: your remark is excellent…. in more ways then one realize.

@ KoosKoen & Chev.

Beide spot-on kommentaar!

The SAA is in a financial “tail spin” death spiral, while ESKOM is busy electrocuting themselves into financial oblivion!

In both cases it will lead to fire and smoke 🙁

Reminds me of the cattle farmer at Ellisras in the late 90’s. He trained all his cattle to go without feed. Just when all the cows were trained, they died.

The Cape Town route remains so that the comrades can fly business class to and from Cape Town & Johannesburg and look down their noses at the general public flying economy.

I advised the SAA to go into “charter” business instead with a few Pilatus PC12’s, Beechcraft King Airs or Cessna Caravans, to learn the ropes from the ground up how to become profitable.

But SA did not listen to me.

Now they’re down to a single route.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: