South African Airways 'near bankruptcy'

[Cossie]

There is still talk of SAA going out of business, is it worth risking Joburg to Nairobi return in July, who has a crystal ball?

Cash Crunch Forces South African Airways to Cancel Flights

A financial crisis at South African Airways deepened Tuesday as a funding squeeze forced the national carrier to cancel several domestic and international flights.

www.bloomberg.com

South African Airways should be saved, says ruling ANC

 

[Sprucegoose]

I read a recent article that suggested South African Airlines was close to bankruptcy and that it was cutting about 20 per cent of its operations.

The JNB - PER and return route did not rate a mention so one assumes it is unaffected.

It allegedly has been corruptly managed so I am surprised it has survived for so long.

 

[mew]

I would definitely wait a while.
Firstly, if the government does not supply the R2bn it promised (due last weekend) they will be bankrupt within a few weeks. They apparently have enough cashflow to pay January wages. The current flight cancellations are a result of this. They are reviewing the situation daily and will cancel lots more low loading flights. I am sure there will be many as their new bookings must very low.
Secondly, the Business rescue administrator is due to report back by the end of February, as to what the future plan will be. There will be major changes so wait until then to see which future routes they will fly.
Remember travel insurance is unlikely to cover insolvency.

 

[N860CR]

There is still talk of SAA going out of business, is it worth risking Joburg to Nairobi return in July, who has a crystal ball?

I’d probably book on Kenya. I’m not back in SA until June but I’m actively booking other airlines.

 

[Scarlett]

This is really a lot like the TG thread in that an airline can have massive state sponsored corruption, or a chance at profitability, but it can't have both...

 

[bPeteb]

We decided it wasn't worth the couple of dollars less with SAA or Mango and booked BA between Cape Town and Joburg (and of course we'll get lounge access).

 

[maia200]

Much better idea, it is the local flights that they have cancelled and merged with Mango, but you never know...go with who you do know.

 

[OZDUCK]

It seems that SAA is trying to survive by drastically reducing destinations served. The Per - JNB route will continue.

South African Airways to close eight international routes and most domestic routes – Business Traveller

Route cuts include Entebbe, Guangzhou, Hong Kong, Munich and Sao Paulo…

www.businesstraveller.com

 

[jenaand]

Announced in the press here in South Africa that SAA will cancel all domestic routes other than JNB-CPT from 29 Feb.
JNB-CPT at reduced capacity.
Mango is unaffected.

SAA to scrap all domestic routes apart from Joburg, Cape Town | Business

SAA will also close routes to Abidjan, Entebbe, Guangzhou, Hong Kong, Livingston, Luanda, Munich, Ndola, and Sao Paulo.

m.fin24.com

 

[Denali]

Hmmmm, I have Johberg to Skukuza (Kruger) booked, will have to investigate

 

[kpc]

Announced in the press here in South Africa that SAA will cancel all domestic routes other than JNB-CPT from 29 Feb.
JNB-CPT at reduced capacity.
Mango is unaffected.

SAA to scrap all domestic routes apart from Joburg, Cape Town | Business

SAA will also close routes to Abidjan, Entebbe, Guangzhou, Hong Kong, Livingston, Luanda, Munich, Ndola, and Sao Paulo.

m.fin24.com

Relieved they have retained the Dar-Jnb route as I have a flight booked in Nov! Can now book Jnb-Cpt which i have held off whilst waiting to see what happens...

 

[vetrade]

Apparently there is oversupply in the local domestic flights market so that was a logical area for them to cut back on. As their discount subsidiary, Mango is expected to be able to cope. The future is not clear, however, because they are facing brand contagion which is exacerbating the downward spiral.

 

[mew]

I'm glad they kept the Perth route for the moment. However, to become profitable will require more than just route cancellations. To start with all the corruptly awarded supply and service contracts must be ditched and replaced by normal market value ones. The vested interests that have sucked SAA dry through these grossly overpriced contracts have very powerful "friends". They will not give up easily.
A cynic might also speculate that the reason CT /JNB was retained was because all the politicians get free business class seats and dont want to lose them.

 

[N860CR]

Hmmmm, I have Johberg to Skukuza (Kruger) booked, will have to investigate

That will be Airlink or SA Express anyway so you should be fine.

 

[jenaand]

Hmmmm, I have Johberg to Skukuza (Kruger) booked, will have to investigate

Keep an eye on things.
SA Express was also ordered into business rescue yesterday.
But Airlink is privately owned (I believe)

 

[N860CR]

SA Express was also ordered into business rescue yesterday.
But Airlink is privately owned (I believe)

Court ordered, and it’s been appealed so it’ll drag on for a while.

Airlink is private and profitable. Realistically, they’re the way forward.

 

[bPeteb]

Happy we booked BA then.

Coincidentally we received an email tonight telling us that the Premier Classe trains for all of July have been cancelled due to lack of bookings. Now looking to cancel first night in Jburg (free cancellation) and fly straight down to Cape Town after flying in on QF63. Wondering how on time QF63 usually is when considering the flight down to Cape Town.

 

[N860CR]

In my experience, the QF flight is either on time or massively late, rarely anything in the middle!

There will be numerous connections to CPT (oddly split between SAA and Comair), but a separate ticket is always a risk.

 

[bPeteb]

In my experience, the QF flight is either on time or massively late, rarely anything in the middle!

There will be numerous connections to CPT (oddly split between SAA and Comair), but a separate ticket is always a risk.

We’ll try to get it linked bit book some kind of changeable as well

 

[N860CR]

You could always stay at the JNB airport Citilodge. Easy walk from the terminal and it’s got a decent bar/restaurant/pool. Then get the first flight to Cape Town in the morning. Safair have an early departure (pre 6am)