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South African Airways to enter into business rescue.

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  • JOHANNESBURG, 5 December 2019. South African Airways (SAA) is today in a position to announce that the Board of Directors of SAA has adopted a resolution to place the company into business rescue at the earliest opportunity.

    As previously announced, the SAA Board of Directors and the Executive Committee have been in consultations with the shareholder, the Department of Public Enterprises (DPE), in an effort to find a solution to our company’s well-documented financial challenges.

    The considered and unanimous conclusion has been to place the company into business rescue in order to create a better return for the company’s creditors and shareholders, than would result from any other available solution.

    Furthermore, the company is seeking to minimize the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.

    SAA understands that this decision presents many challenges and uncertainties for its staff. The company will engage in targeted communication and support for all employee groups at this difficult time.

    SAA will endeavour to operate a new provisional timetable and will publish details shortly. The company greatly appreciates the continued support of both its customers and partners in the travel industry around the world.

    The Board of Directors will also announce the appointment of business practitioners in the near future, and provide media updates as and when appropriate.

    It is important to point out that services operated by SAA’s subsidiary airline, Mango, will continue as usual and as scheduled.

    ISSUED BY SAA BOARD OF DIRECTORS

    For Media Enquiries, please contact:

    SAA Spokesperson
    Mr Tlali Tlali
    Email:               TlaliTlali@flysaa.com
    Mobile:             +27 (0)82 333-3880
    Office:               +27 (0)11 978-2298

    https://www.flysaa.com/about-us/leading-carrier/media-center/media-releases/newsroom

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South African Airways to Enter Into Bankruptcy Protection

5/12/19

By Paul Vecchiatto and Antony Sguazzin

 Last-ditch measure is aimed at preventing carrier’s closure
 SAA last made a profit in 2011, is reliant on state bailouts

South Africa’s government will place the national airline under a local form of bankruptcy protection as a last-ditch measure to try and prevent its total collapse.

State-owned South African Airways is entering a business-rescue process to allow a “radical restructuring” under which the carrier will receive 4 billion rand ($274 million) in funding, Public Enterprises Minister Pravin Gordhan said in a statement Thursday. The process will allow SAA to continue operating.

“This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets of SAA and help to restructure and reposition the entity into one that is stronger, more sustainable and able to grow and attract an equity partner,” Gordhan said.

SAA, which last made a profit in 2011 and has received 57 billion rand in bailouts since 1994, has been struggling to pay its bills after the National Treasury balked at providing it with more funding. Its finances took a further hit when staff staged a pay strike last month, grounding a number of flights and causing bookings to be canceled on a number of others.

South Africa’s Companies Act enables firms in financial distress to file for business rescue. If granted, a business-rescue practitioner is appointed to help the company reorganize and assess whether it can be turned around. Companies in the process of being rehabilitated are protected from liquidation and legal proceedings, enabling them to keep trading.

Gordhan said the business-rescue process at SAA will include:

Existing lenders to SAA will provide 2 billion rand of “post-commencement finance” guaranteed by the government and repayable out of future budget appropriations to enable SAA to continue to operate
The Treasury will provide an additional 2 billion rand of funding in a “fiscally neutral manner”
The full recovery of capital and interest on existing debt provided to SAA by existing lenders that is the subject of existing government guarantees will not be impacted by business rescue
A review of the airline’s cost structure will be conducted, with a simultaneous effort to retain as many jobs as possible. SAA has more than 5,000 workers, and the SAA Group of companies employs thousands more.
“This set of actions should provide confidence to customers of SAA to continue to use the airline because there will not be any unplanned stoppages of flights or cancellation of flights without proper notice should that be necessary,” Gordhan said.

SAA spokesman Tlali Tlali said the company’s board will announce the appointment of business-rescue practitioners in “the near future.” It also plans publish a new provisional flight timetable “shortly,” he said in an emailed statement.

Labor union Solidarity filed a lawsuit last month aimed at forcing the airline into business rescue, saying the measure was needed to guard the interests of workers and taxpayers whose money was being squandered.

Other labor unions, such as the National Union of Metalworkers of South Africa, have opposed talk of restructuring the airline or selling a stake to private investors. That’s in line with most unions in South Africa, which have threatened strikes if the government attempts to reorganize state companies and cut jobs.

Taxpayer Burden
“By placing South African Airways under business rescue, the South African government effectively outsources the hitherto politically unpalatable (but essential) work of restructuring the failing national carrier to non-ANC hands,” said Daniel Silke, the director of Cape Town-based Political Futures Consultancy, in a Twitter posting. The ANC is South Africa’s ruling African National Congress.

The main opposition Democratic Alliance welcomed the government’s decision to voluntarily place the carrier into business rescue, saying this was the only viable option to prevent it from placing any further burden on the economy and taxpayers.

“The business practitioner who is appointed must take robust action to immediately cut costs at SAA,” DA lawmaker Alf Lees said by email. With business rescue will come an obligation for government guarantees to be honored, which will require “an increase in sovereign borrowings that in turn will increase debt-service costs and place a further burden on taxpayers.”

— With assistance by Liezel Hill

(Updates with minister’s comments from second paragraph)
 

https://www.bloomberg.com/news/articles/2019-12-04/south-african-airways-to-be-placed-into-business-rescue?cmpid%3D=socialflow-twitter-markets&utm_campaign=socialflow-organic&utm_content=markets&utm_source=twitter&utm_medium=social

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SAA, Alitalia, Aerolíneas e Malaysia...

 

Dariam um filme de zumbis.

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1 hour ago, Delmo said:

SAA, Alitalia, Aerolíneas e Malaysia...

 

Dariam um filme de zumbis.

Thai !

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7 hours ago, Delmo said:

SAA, Alitalia, Aerolíneas e Malaysia...

 

Dariam um filme de zumbis.

Alitalia não conta porque sempre é resgatada pelo governo 

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Não duvido que esta concordata seja fajuta, e não uma oportunidade de  fato de reestruturar a empresa.

O que vão fazer: lançar a SAA Mk. 2 com os ativos bons da SAA original e depois esta ser incorporada ao governo. A nova SAA continua como a anterior, só que sem dívidas.

16 hours ago, FCRO said:

Thai !

Interessante que a Thai sempre foi lucrativa, quando o mercado era mais fechado e as LCC eram incipientes lá. Hoje o tombo foi tão grande que também cogitam medidas drásticas. Aliás a Ásia vai mudar muito o cenário na próxima década. Além da Thai, empresas como a Korean, Asiana e Singapore Airlines, uma vez aclamadas por suas performances financeiras, hoje tentam não perder mais mercado para as LCC.

10 hours ago, Luckert said:

Alitalia não conta porque sempre é resgatada pelo governo 

As outras também. Malaysia por exemplo, os A380 delas são do governo malaio que assumiu a dívida junto à Airbus.

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39 minutes ago, A345_Leadership said:

Não duvido que esta concordata seja fajuta, e não uma oportunidade de  fato de reestruturar a empresa.

O que vão fazer: lançar a SAA Mk. 2 com os ativos bons da SAA original e depois esta ser incorporada ao governo. A nova SAA continua como a anterior, só que sem dívidas.

Interessante que a Thai sempre foi lucrativa, quando o mercado era mais fechado e as LCC eram incipientes lá. Hoje o tombo foi tão grande que também cogitam medidas drásticas. Aliás a Ásia vai mudar muito o cenário na próxima década. Além da Thai, empresas como a Korean, Asiana e Singapore Airlines, uma vez aclamadas por suas performances financeiras, hoje tentam não perder mais mercado para as LCC.

As outras também. Malaysia por exemplo, os A380 delas são do governo malaio que assumiu a dívida junto à Airbus.

Não estava a par que os africanos querem fazer uma fajuta falência para recriar a empresa sem dívidas

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On 06/12/2019 at 06:19, Luckert said:

Não estava a par que os africanos querem fazer uma fajuta falência para recriar a empresa sem dívidas

O que eu disse é suposição, não sei se farão de fato. Mas o fato de fechar uma empresa e abrir outra é comum no mundo todo. Na aviação temos a Alitalia e a MAS, fora que o governo indiano pretende fazer isto com a Air India.

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Entendo que seria como foi feito com a VARIG. As dívidas ficaram na parte podre defunta e os bens que produzem algo tendo sido vendidos à GOL.

 

Plano semelhante ao aspirado pela OceanAir (RIP).

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Ela colocou todos os seus A340 (7 -300s e 9 -600s) a venda mas não é fácil mover esses aviões.

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a airlink já quer cair fora e voar por conta própria

 

Airlink begins SAA uncoupling; Eswatini unit pursues own AOC

20.01.2020 - 11:58 UTC

 

Airlink (South Africa) (4Z, Johannesburg O.R. Tambo) has set about disentangling itself from bankrupt South African Airways (SA, Johannesburg O.R. Tambo) following the replacement of its SAA franchise agreement with what it termed, "a new commercial arrangement".

In a statement issued last week, privately-owned Airlink said that under the revised terms of its partnership with SAA, effective June 11, 2020, it will resume operating flights under its own "4Z" flightcode.

Airlink abandoned the use of its own flightcode in favour of four-digit SA8xxx flight numbers in 1997 when it entered into a strategic alliance with SAA and South African Express (XZ, Johannesburg O.R. Tambo). The partnership gave Airlink access to SAA's reservations and ticketing system and by extension, implicit interline connectivity to any and all airlines with which SAA has an interline agreement.

However, with SAA's future now uncertain given its entry into business rescue last year, Airlink has now set about becoming an independent carrier once more.

"The change marks a new era in the long-standing commercial agreement with SAA," it said in a statement on January 16. "While SAA remains an important strategic pillar in Airlink’s strategy, the new arrangement gives Airlink the freedom to extend its commercial reach, develop more routes and frequencies on an independent basis and extend or establish additional agreements with other leading international airlines."

The ch-aviation fleets advanced module shows Airlink operates eight Jetstream 41s, seventeen E135s, eleven E140s, three E170s, and twelve E190s on a network that spans South Africa as well as Zimbabwe, Zambia, Botswana, Namibia, St Helena, Mozambique, Uganda, Madagascar, Lesotho, and Eswatini (formerly Swaziland).

In Eswatini, Airlink is a minority shareholder in Eswatini Airlink (formerly Swaziland Airlink), a regional carrier that operated its own aircraft under an Eswatini AOC from 1999 until September 2012. However, owing to the downgrading of the Eswatini Civil Aviation Authority (ESWACAA) in 2012, Eswatini Airlink has relied on its South African parent for the provision of air services in their entirety; it currently uses Airlink's AOC, aircraft, crew, traffic rights, and air services licence to carry out flights on its sole return route - Manzini Matsapha-Johannesburg O.R. Tambo.

However, last week, Joseph Dlamini, the newly appointed General Manager of Eswatini Airlink, told the Swazi Observer newspaper that the airline was now in the process of resecuring its own AOC and operating licence from ESWACAA, a move that would allow it to resume inhouse flight operations.

“We are currently involved in the registration and licensing process and once that process is done, they will know the exact time of launching the local operation of the flights. However, the process is unfortunately not being handled by ourselves as we are dependent on the regulator to issue the relevant licenses for us to be able to start our operations,” he said.

Once completed, Dlamini hinted that Eswatini Airlink may expand beyond its Johannesburg route should market demand allow for it.

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On 21/01/2020 at 15:39, F-BVFA said:

Ela colocou todos os seus A340 (7 -300s e 9 -600s) a venda mas não é fácil mover esses aviões.

Chance mínima de conseguirem bons valores, salvo se conseguirem driblar as sanções e vender para o Irã e outros países.

On 21/01/2020 at 15:44, FCRO said:

a airlink já quer cair fora e voar por conta própria

 

Airlink begins SAA uncoupling; Eswatini unit pursues own AOC

20.01.2020 - 11:58 UTC

Lembra muito o caso Crossair/Swissair, com a primeira querendo vida própria.

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59 minutes ago, A345_Leadership said:

Chance mínima de conseguirem bons valores, salvo se conseguirem driblar as sanções e vender para o Irã e outros países.

Lembra muito o caso Crossair/Swissair, com a primeira querendo vida própria.

e foi a crossair que originiou a swiss depois da quebra da swissair...

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20 minutes ago, FCRO said:

e foi a crossair que originiou a swiss depois da quebra da swissair...

Os alemães transformaram a nova Swissair numa das filiais mais rentáveis do Grupo LH

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SA Express's BRPs prep for liquidation as funds dry up

24.03.2020 - 09:44 UTC

 

South African Express (XZ, Johannesburg O.R. Tambo) is set to be liquidated after the bankrupt carrier's business rescue practitioners (BRP) failed to secure the ZAR200 million rand (USD12.77 million) worth of post-commencement funding (PCF) allocated to it in South Africa's 2020/21 Budget. The state-owned airline was placed into business rescue in February in the hopes of salvaging its operations.

However, the turnaround of the carrier, which has generated cumulative losses of ZAR1.2 billion (USD76.7 million) since 2010, has been hampered by government's unwillingness to disburse the allotted funds. While the Department of Public Enterprises (DPE) has attempted to portray the delay as the fault of the BRPs and their inability to devise an acceptable restructuring plan, media reports have pointed to the DPE undermining the BRPs by attempting to have them replaced with others deemed to be more inclined to saving the airline.

Internal company correspondence dated March 21 and seen by BusinessDay indicates BRPs Phahlani Mkhombo and Daniel Terblanche informed employees that without the disbursement from Treasury, they had been unable to stabilise SA Express's balance sheet, a prerequisite for its restructuring. As such, the carrier had "just over ZAR1 million rand (USD56,300)" its bank account last week, insufficient to pay salaries, insurance, make contributions to the provident fund, pension fund, income protection, UIF and PAYE of employees since February.

“We have [therefore] come to the conclusion that a reasonable prospect to rescue the Company no longer exists, and consequently, we will begin a process to convert the current business rescue proceedings of the Company into liquidation... with immediate effect,” the letter to employees read.

The BRPS added that, if the state is able to s

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Pra você ver: a coisa tá tão ruim que a companhia vai pro saco por USD 12MM apenas, dinheiro de pinga para aviação.

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SAA turnaround plan deadline extended to late 2Q20

27.03.2020 - 05:49 UTC

 

South African Airways (SA, Johannesburg O.R. Tambo) administrators have been given until May 29 to devise and present a turnaround plan. Business Rescue Practitioners (BRP) Les Matuson and Siviwe Dongwana said in a statement on March 26 that creditors had acceded to their request to have the deadline pushed back by three months from late March.

"We confirm that a further extension for the publication of the plan from March 31, 2020, to May 29, 2020, has been approved by the requisite majority of the creditors holding voting interests in the Company," they said.

The BRPs, in their letter to creditors last week, cited the difficult circumstances SAA found itself in; namely the impact the COVID-19 pandemic had had on its business as well as the need for lengthy redundancy talks with labour unions.

In line with President Cyril Ramaphosa's plan to curb the coronavirus's spread, SAA, as with other South African carriers, grounded itself on Tuesday for a period of three weeks until April 16 at the least. While the suspension of flights presents a serious threat to SAA's already imperilled bottom line, the BRPs have reaffirmed their commitment to turning the stricken airline around.

A spokeswoman for the BRPs, Louise Brugman, told Tourism Update that while variable costs – such as fuel and parking fees – had been reduced following the grounding of flights, fixed costs remained the same. “The latter includes salaries, which we will pay at the end of the month,” she said.

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e sua concorrente também está se reestruturando

South Africa's Comair launches restructuring, to cut jobs

27.03.2020 - 04:19 UTC

 

Comair (South Africa) (MN, Johannesburg O.R. Tambo) launched a company-wide restructuring on March 23, which it described as an attempt to ultimately improve efficiency and financial sustainability, the South African business news site Fin24 reported.

The reorganisation at the British Airways franchisee includes the start of retrenchment under Section 189 of the country's Labour Relations Act, which allows employers to dismiss employees for operational requirements.

How many jobs will be cut has yet to be decided, but there are reportedly mounting losses across several of Comair's businesses, which include low-cost brand Kulula Air and, since late last year, Star Air (South Africa), as well as airport lounges, training, and catering.

“Despite our efforts over the past few months to preserve cash, maintain liquidity, divestment from nonperforming acquisitions, aggressive cost reduction across the group, taking back control of the fleet and unlocking further operational efficiencies, more remains to be done,” said CEO Wrenelle Stander in a statement.

Reducing staff numbers was a decision taken with “great regret,” she added. “We continue to pursue cost reduction measures across the group to mitigate the impact on our staff.”

The move comes several weeks after Comair reported an operating loss of ZAR564 million rand (USD32 million) in its interim results for the six months ending December 31, ZAR450 million (USD26 million) of which was attributable to an increase in the loss allowance under the IFRS 9 financial reporting standards on a South African Airways damages claim.

On February 15, 2019, SAA agreed to pay its rival carrier ZAR1.1 billion rand (USD78 million at the time) to settle a longrunning anti-competition case, with a payment schedule running until July 28, 2022. The flag carrier failed to make a payment due on December 28, 2019, having filed for bankruptcy earlier that month.

“The future recoverability of the amount outstanding from SAA remains uncertain,” Comair admitted in a February 26 statement accompanying its results.

The restructuring announced on March 23 comes amid a tough economic climate worsened by the “unprecedented crisis” of the coronavirus pandemic, Comair said.

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