SAA may not be able to operate airline as a going concern Carrier made net loss of R5.6 billion in fiscal 2017: report.
Arabile Gumede, Bloomberg / 9 March 2018 00:49 19 comments
Picture: Shutterstock Picture: Shutterstock
South African Airways may not be able to continue to operate as a going concern, while the struggling state-owned airline has failed to properly record financial information and the value of assets, according to the Auditor General.

SAA made a net loss of about R5.6 billion ($471 million) in the year through March 2017, according to a document signed by AG Kimi Makwetu. Liabilities exceeded assets by about R17.8 billion, it said.

“Six consecutive years of operating losses have further eroded the capital base and this continues to impact on the entity’s ability to operate in a highly demanding and competitive environment,” the AG said in the report, which was dated Dec. 8 and released Thursday.

A turnaround of SAA is among the most pressing items in the in-tray of South African President Cyril Ramaphosa, who has pledged to revive state companies after years of mismanagement and corruption allegations under Jacob Zuma eroded their balance sheets. Under new Chief Executive Officer Vuyani Jarana, the company is cutting routes and costs to reduce a dependency on government debt guarantees.

The airline is looking for an equity partner to provide cash to help turn it around. Former Finance Minister Malusi Gigaba said in November there had been interest in a deal, while SAA is also compiling a list of assets that could be sold.

The AG faced challenges in compiling the report as SAA didn’t keep a proper record of financial information or adequately value property, planes and other assets, he said.

SAA spokesman Tlali Tlali said he’s unaware of the report.

© 2018 Bloomberg

I remember well the good old days of SAA before the end of apartheid and the start of BEE. Great service, clean aircraft, pleasant travel experience. Now it’s a “black” hole of flying shit....

That may cause issues with air travel in South Africa for hunters with firearms.

Earlier this year SAA gave a chunk of their short hauls business to other airlines,and those airlines do not take firearms. And that is troubling for hunters with firearms. I know my PH this year e mailed me to check on my flights and i had to change the flight times to match up to SAA new schedule. So this change resulted in limited flight with SAA for hunters to take their firearms.

The flight service across the pond was going down hill since i started flying with them in 2011. The short hauls in South Africa have been very good.

quote:

Originally posted by jdollar:
I remember well the good old days of SAA before the end of apartheid and the start of BEE. Great service, clean aircraft, pleasant travel experience. Now it’s a “black” hole of flying shit....

I was just thinking the very same thing. Back in the early and mid-80's, SAA was an outstanding airline. No more.

I was not impressed with them in my only experience with them in 2015. The entertainment devices were inoperative in several seats, the counter person in Joberg was rude, the plane staff was hostile, and they were all in need of personal hygiene.

I flew them once after apartheid ended and BEE become the order of the day. Never again. If I wanted to be treated like shit by someone in need of a bath, I would go visit an exwife....

So far I have flown them 5 times and I enjoyed the experience and hospitality.I will fly with them again this year.I love that SA accent of the person on the loudspeaker on the plane.

I've flown them many times over the last 8 years, both long haul and intra Africa as well.
No issues at all. They aren't to the level of Emirates or Qatar, but they were on time, the planes modern and of course very gun friendly.
I'll be flying with them short haul again this year for my 2 safaris.
Am looking forward to it!!!,
Let's hope that they keep flying !!!,

Nick

SAA is going to have a very hard time finding partners to bail them out given the political rhetoric we are hearing regarding land "reform" etc. I would agree that since BEE the graph is running steeply downhill. My experience with them is over an 18 year period and what we have today in no way comparable to the service we enjoyed then.

I first flew SAA in 2002. It was a good experience, with plenty of food and drink, and friendly, helpful flight attendants.

The next time I flew them was in 2003. Apparently the airline had been nationalized. The food was barely edible and the flight attendants (all black) were sullen and lazy.

Never again have I flown SAA (although I have flown their domestic branch).

Good riddance!

BH63