SAA administrators suspend all operations

Until funding for a restructuring plan is found.
Image: Shutterstock

Administrators in charge of South African Airways (SAA) said on Tuesday that they were suspending all operations and putting the struggling state-owned airline under “care and maintenance” until funding for a restructuring plan was found.

SAA entered a local form of bankruptcy protection in December, after almost a decade of financial losses, and its longstanding woes have been exacerbated by the Covid-19 pandemic.

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The administrators published a restructuring plan in June, but the government is yet to come up with the more than R10 billion ($590.7 million) needed for it work, despite committing to do so.

Public finances are massively stretched by its Covid-19 emergency response.

“The BRPs (administrators) have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed,” the administrators said in a notice to affected parties.

They added that certain funders were willing to provide a portion of the funds for the airline’s restructuring plan, and that they were engaging with the government on the remaining funding needed.

A company’s assets can be put under care and maintenance to keep them in good condition when they are not being used. SAA has not flown commercial passenger flights since March, when the government imposed one of the strictest lockdowns in the world to contain the spread of the coronavirus, but it has flown repatriation and cargo flights since then.

“All existing cargo and repatriation flights will be undertaken. No new ones will be accepted,” a spokeswoman for the administrators told Reuters.

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Still looking for the magical partners that we all got so exited about?
Pull the plug and get it over and done with.

My hunch is that the magical funders are the SA banks.

Will any SA bank borrow funds to SAA?
Did SAA not default on payments sometime ago?

I wonder how much does SAA (the airline) owes SAA Technical in fee arrears?

Perhaps now time for SAA Technical to stop servicing the airline. (all the dancing cadres can inspect & work on the SAA fleet from now on. And let the ANC fly for free.)

Excellent idea – Gordhan can man the cockpit while Mboweni can make one of his chevs delights on a braai fire in the isle! Drinks can be served by Ramaphoria from papsakke (remember they’re out of money) and seeing SAA Tech won’t inspect before take-off any more, they can get the ANC Integrity Commission to check it out!
It would be funny if not so really sad! But it’s shown up Mboweni for what he really is; planning to make further cuts than the already incisive ones to service delivery like education, safety and security (let them shoot more top detectives) health, etc, in the October budget!
SIS, ANC!

Hope this also applies to Mango, the other state disaster! There’s not even any guarantee Mango craft are safety-checked technically before take-off. That’s what you get when politicians are desperate for votes!
It’s a disgrace that apparently SAA Technical is expected to run an indefinite tab for Mango and SAA while SAA Tech staff are having their salaries further slashed to a quarter of what they earned before lockdown. Obviously they realise it’s a matter of time before theyre expected to work for free. Join the new airlines, guys, because between Mango and SAA no tax-paying citizen will support that brand in a million years!

on top of it, if south africa lose these technical people to other countries, not that any foreign country’s airways currently looks very lucrative, but if they are lost they are lost for good – these technicians are not back yard mechanics, but highly trained specialists in their field.

I think we need to call Dr. Jack Kevorkian and solve this.

Perhaps try the end of a rainbow for funds ? Maybe commie Gordhan feels so strongly about SAA that he puts his own bucks in ?

Never thought about this excellent idea. If they believe in the idea; then put you money where your mouth is. Crowd funding by parliamentarians and union leaders from their take home pay.

By constantly threatening to liquidate SAA before extending the deadline, the BRPs remind me of the guy who kidnapped Dany DeVito’s wife in the “Ruthless People” movie.

I actually feel like Dany DeVito telling the guys: “You said you would kill her if I did not pay, why is she still alive?”

End of comments.

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