Tag Archives: South African Airways

South African Airways faces a crisis, continued government funding is cut off

South African Airways is facing an uncertain future. Its owner, the government of South Africa, has told the bankrupt flag carrier to find other sources of funding. The government is not cutting off the carrier from future funding.

Read the full story from Bloomberg.

In other news, SAA together with the WorkAway International group repatriated over 300 South Africans from Miami International Airport – MIA to Joburg, Cape Town, and Durban.

SAA returns to Miami International Airport – MIA for the first time in over 20 years for a special repatriation charter flight.

South African aircraft photo gallery:

South African Airways cancels all domestic flights

South African Airways has made this announcement:

South African Airways (SAA) announced its decision to suspend all its domestic flights with effect from Friday, March 27 until April 16, 2020 (inclusive). The decision came after government announced a nation-wide lockdown for 21 days aimed at combatting the spread of the Coronavirus (COVID-19).

SAA supports this national effort as announced by the government, to retard, contain, manage and disrupt the rate of transmission of the COVID-19.

Last Friday, SAA announced the suspension of all intercontinental and Africa regional flights. All these flights remain suspended until May 31, 2020.

South African aircraft photo gallery:

South African Airways suspends all international and regional flights

South African Airways made this announcement:

South African Airways (SAA) has announced that it will immediately suspend all international operations until May 31, 2020 in response to a government travel ban aimed at stopping the transmission of the Coronavirus (Covid-19).

The COVID-19 pandemic and attendant travel restrictions, resulted in substantial decline in demand for air travel. The situation caused many airlines across the world to ground aircraft, release their employees, and to cancel flights. In the case of SAA, this decision means that SAA will only render services on its regional and domestic routes.

Following the declaration of the State of Disaster after the outbreak of COVID-19 in South Africa, the government announced a travel ban and issued regulations, which introduced certain measures aimed at combatting the spread or transmission of the virus.

Amongst other things, the regulations, issued on Thursday state that: “Disembarkation of foreign nationals from the high-risk countries is suspended on airports upon arrival. Embarkation and disembarkation is permissible under the following circumstances: Disembarkation of returning South African citizens and permanent residents; embarkation of departing foreign nationals, disembarkation of a declared medical emergency; foreign nationals must be approved by port health services; upon landing, crew from high risk countries shall be subject to medical screening and quarantined for 21 days”.

SAA operates in three markets that form part of countries listed in the travel ban as high-risk areas. These are the United States (Washington DC and New York, JFK), the United Kingdom (London, Heathrow) and Germany (Frankfurt and Munich). In addition, SAA operates flights to Australia (Perth) and Brazil (São Paulo) which have not been declared high-risk. All of which are now cancelled.

The airline also made this announcement:

South African Airways (SAA) announced that it is suspending all international flights with immediate effect until May 31, 2020, to support the government travel ban aimed at stopping the transmission of the Coronavirus (Covid-19).

As a direct consequence of this suspension, there was an immediate drastic reduction of demand for the African regional flights. SAA is a network carrier, which means that a significant part of the regional bookings demand is fed by the passengers that travel to or from the international destinations.

Therefore, the suspension of the international flights has resulted in the airline not being able to operate its normal network. This resulted in operation of regional flights not being commercially viable anymore.

Flights to the following destinations have been suspended as of March 20, 2020 until May 31, 2020: Accra (Ghana), Lusaka (Zambia), Harare (Zimbabwe), Victoria Falls (Zimbabwe), Windhoek (Namibia), Lagos (Nigeria), Entebbe (Uganda).

Mauritius will operate until Saturday, March 21, 2020.

This decision means that SAA will only continue to render services on its domestic route between Johannesburg and Cape Town.

South African Airways aircraft photo gallery:

South African trims its route structure to save money

South African Airways made this announcement:

The joint Business Rescue Practitioners (BRPs) of South African Airways (SAA) have announced further initiatives to support the airline’s transformation into a sustainable and profitable business.

The BRPs, Les Matuson and Siviwe Dongwana, have worked closely with key stakeholders including industry specialists, government, creditors and executive management to develop a comprehensive restructuring programme which will culminate in a Business Rescue Plan to be published in late February and subsequently presented to creditors for approval.

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.

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.

“The initiatives we are taking now will strengthen SAA’s business. We believe that this should provide reassurance to our loyal customers that SAA is moving in the right direction. We are focused on our mandate to restore SAA’s commercial health and create an airline that South Africans will be proud of”, commented the BRPs.

Changes to SAA’s Network

Following a careful analysis of SAA’s liquidity challenges and after consultations with all relevant stakeholders, the BRPs have identified which routes will be retained to drive the restructured national carrier towards profitability.

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

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

On February 29, 2020, SAA will close the following regional and international services from Johannesburg to Abidjan via Accra, Entebbe, Guangzhou, Hong Kong, Luanda, Munich, Ndola, and Sao Paulo.

On the domestic route network, SAA will continue to serve Cape Town on a reduced basis.

All other domestic destinations, including Durban, East London and Port Elizabeth, will cease to be operated by SAA on February 29, 2020. Domestic routes operated by Mango will not be affected by the changes.

SAA does not intend to make any further significant network changes. Passengers and travel agents can therefore feel confident about booking future travel with South African Airways.

ASSETS

To improve the airline’s liquidity, rationalisation programs are under consideration for SAA’s subsidiaries, as well as the sale of selected assets. The BRPs will continue to explore viable investment opportunities with potential investors in respect of SAA.

JOBS

The joint BRPs have stated that every effort is being taken to limit the impact of job losses in SAA and its subsidiaries.

“It is our intention to restructure the business in a manner that we can retain as many jobs as possible. This will help provide a platform to a viable and sustainable future. However, a reduction in the number of employees will unfortunately be necessary”, said Matuson and Dongwana.

The BRPs will engage labor, both organized and non-organized, to reach a solution necessary for a sustainable airline going forward.

The BRPs wish to underline their support of the President’s proclamation for the Special Investigating Unit to examine some of the airline’s contracts. This measure will help in assessing viable agreements and in reducing SAA’s cost base.

The decisions and actions announced today are aimed at improving SAA’s balance sheet, creating a platform for a strong and sustainable airline and ensuring that the company is more attractive for potential strategic equity partners.

South African Airways aircraft photo gallery:

South African Airways gets emergency funding

South African Airways has made this announcement:

The business rescue practitioners of South African Airways SOC Ltd (the Practitioners), supported by the Departments of Public Enterprises (DPE) and National Treasury (NT), have been successful in obtaining the balance of the post commencement funding (PCF) required to meet the short term liquidity requirements of the airline for the period until the business rescue plan (the Plan) is published and adopted. This Plan is required in terms of Section 150 of the Companies Act and is the responsibility of the Practitioners.

The advancement of the funds comes on the back of the business rescue process which began on December 5, 2019, with the local commercial banks providing the initial PCF of R2 billion in addition to the existing exposures to SAA.

Discussions held with financial institutions have been fruitful with the Development Bank of Southern Africa offering to provide the next tranche of PCF, for a total amount of R3.5 billion, with an immediate draw-down of R2 billion. Furthermore, funding for the restructuring phase after the Plan is adopted is being considered by potential funders.

The restructuring of SAA will provide an opportunity to develop a sustainable, competitive and efficient airline with a strategic equity partner remaining the objective of government through this exercise and will result in the preservation of jobs wherever possible. SAA is a key strategic asset which needs to be positioned to provide reliable connectivity to markets within South Africa, the African continent as well as servicing selected international routes.

Stakeholders of the airline should now have comfort that the rescue process is on a significantly sounder footing, and that passengers and travel agencies and airline partners may continue to book air travel on SAA with confidence.

South African Airways aircraft photo gallery:

South African to sell nine Airbus A340s

South African Airways (SAA) has put some of its aircraft up for sale to accommodate the new Airbus A350-900s the airline recently added to its fleet.

In a tender on the airline’s website, SAA said it was selling nine wide-body aircraft – – five Airbus A340-300s and four Airbus A340-600s – – and 15 spare engines and four Auxiliary Power Units, a device used to provide energy.

“After we received the four new Airbus A350-900, it has become necessary for us to sell our older models to accommodate the new models with superior features such as the quieter cabin, relaxing in-flight environment and more extra-legroom seats in economy class and lie-flat beds in business Class,” said Zuks Ramasia, SAA’s Acting CEO.

“The decision to sell the aircraft has nothing to do with the business rescue process. For some time we had planned to replace our four-engine aircraft with new generation and more efficient aircraft as part of our fleet renewal programme,” said Ramasia.

“When we received five A330-300s in late 2017- early 2018 we had already planned to retire five A340s at that time, but due to the operational fleet undergoing maintenance, the retirement of the aircraft was postponed. Now is the time to sell the aircraft,” she said.

Ramasia said with the new A350s which will start operating on its international route network next week, replacing the A340s has become possible. The closing date for the tender is January 30, 2020 at 11.00 am SA time.

The aircraft on sale used to operate on regional and international routes, which will now be flown by the A330s and A350-900s.

Note: The remaining Airbus A340s are now likely to be retired in 2021.

Top Copyright Photo: South African Airways Airbus A340-642 ZS-SNI (msn 630) JFK (Fred Freketic). Image: 944355.

South African Airways aircraft slide show:

South African’s Airbus A350-900 operates first international flights to and from New York

South African Airways (SAA), a Skytrax 4-Star rated carrier, has introduced the most technology-advanced aircraft available for international ultra-long- haul travel with the launch of its new Airbus A350-900 on nonstop flights between New York John F. Kennedy International Airport to Johannesburg O.R. Tambo International Airport starting January 20, 2020. The A350-900 aircraft will be featured on SAA’s service on the New York route operating six (6) days per week through March 31, 2020 and resuming daily service on April 1, 2020.

“This inaugural flight was the first that we plan to introduce on our international routes in the near future. We are excited that our passengers will enjoy the A350s superior features such as a quieter cabin and relaxing in-flight experience including the all-new In-flight Entertainment (IFE), extra-legroom seats in Economy Class and lie-flat beds in Business Class,” said Zuks Ramasia, SAA’s Acting CEO.

The aircraft, which is environmentally friendly, with improved fuel-efficiency can fly further than any other aircraft in commercial service. It is one of the four new Airbus A350-900s that SAA added to its fleet in October 2019. It replaces the Airbus A340-600, which was being used on the route.

“All the A350-900s are equipped with Rolls-Royce Trent XWB engines. Since entering service in 2015, the Trent XWB engines have flown more than five million hours, and are now regarded as the world’s most efficient large aero-engines.

“The introduction of the A350s will contribute to our operational efficiencies and cost reduction, and forms part of the ongoing fleet renewal programme.

“For example, through the A350s, we will lower our operational costs, and save on our fuel consumption by 25% and also lower our maintenance costs by 40% over a five-year period,” said Ramasia.

South African aircraft photo gallery:

South African consolidates select domestic flights and flights to Munich

South African Airways (SAA) is in the process of consolidating selected domestic flights between the airline’s main hub, Oliver Tambo International Airport Johannesburg (JNB) and Cape Town (CPT), as well as between Johannesburg (JNB) and Durban’s King Shaka (DUR) airports.

SAA is working closely with its sister airline, Mango, to re-accommodate passengers on alternative services operated by both airlines to minimise disruption, and thereby ensure passengers reach their destination as quickly as possible.

The following domestic flights operated by SAA have been cancelled:

Johannesburg (JNB) – Cape Town (CPT)

SA303 Depart 0530 Arrive 0735 Dates: 20, 21 & 24 January

SA307 Depart 0700 Arrive 0905 Dates: 21 January

Cape Town (CPT) – Johannesburg (JNB)

SA316 Depart 0820 Arrive 1015 Dates: 20, 21 & 24 January

SA322 Depart 0950 Arrive 1145 Dates: 21 January

Johannesburg (JNB) – Durban (DUR)

SA527 Depart 0630 Arrive 0735 Dates: 20, 21, 22 & 23 January

SA543 Depart 0955 Arrive 1100 Dates: 20, 21, 22 & 23 January

SA571 Depart 1655 Arrive 1800 Dates: 20 & 21 January

Durban (DUR) – Johannesburg (JNB)

SA534 Depart 0805 Arrive 0910 Dates: 20, 21, 22 & 23 January

SA550 Depart 1130 Arrive 1235 Dates: 20, 21, 22 & 23 January

SA578 Depart 1840 Arrive 1945 Dates: 20 & 21 January

On the international network, SAA is cancelling selected services between Johannesburg (JNB) and Munich (MUC). SAA will re-accommodate passengers on its services between Johannesburg (JNB) and Frankfurt (FRA) as well as London Heathrow (LHR). Some passengers travelling to Munich, and others travelling via Munich to other destinations, will be re-accommodated for some of their journey on partner airlines in the Star Alliance to minimise delays.

The following flights have been cancelled:

Johannesburg (JNB) – Munich (MUC)

SA264 Depart 2115 Arrive 0700 Dates: 20, 21, 22, 23 & 24 January

Munich (MUC) – Johannesburg (JNB)

SA265 Depart 2030 Arrive 0820 Dates: 21, 22, 23, 24 & 25 January

These decisions are in line with SAA’s usual policy of reviewing flights and consolidating services with low demand. Furthermore, during the current process of Business Rescue, these cancellations represent a responsible strategy to conserve cash and optimise the airline’s position ahead of any further capital investment.

The consolidation on the Cape Town route is also necessary as SAA has been operating training flights for pilots on the new state-of-the-art Airbus 350-900 aircraft on this route, before transferring the new planes to international routes.

The introduction of these larger aircraft has resulted in temporary surplus capacity on the route.

SAA will be reviewing further possible flight schedule amendments over the coming days. Any operational changes will be communicated to our travel trade partners and customers at the earliest opportunity and passengers will be re-accommodated on other airlines wherever possible.

South African Airways to enter into “business rescue”

South African Airways (SAA) is today (December 5) 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

Top Copyright Photo: South African Airways Boeing 737-844 WL ZS-SJS (msn 32632) JNB (Christian Volpati). Image: 948484.

South African aircraft slide show:

Unions end their strikes against South African, airline restores full service

South African Airways has issued this update:

South African Airways (SAA) is pleased to announce that the airline will be restoring a full flight schedule in stages over the weekend.

This process has been made possible following the agreement reached to resolve the ongoing industrial dispute between SAA and the coalition between the National Union of Metalworkers of South Africa (NUMSA) and the South African Airways Cabin Crew Association (SACCA) unions.

In practical terms, this means that SAA will operate a near normal service on Saturday, November 23, 2019. Whilst there will be selected cancellations, principally on the domestic network and on a small number of regional flights, the airline expects to be able to provide service to all customers. Any customers requiring re-accommodation on a rescheduled service or on another airline will be contacted accordingly or assisted at their departure airport.

On Sunday, November 24, 2019, SAA expects to operate its full schedule as usual. This means that SAA will operate services as usual on all three of its networks: domestic, regional (points on the African Continent) and international.

“We are delighted to be able to announce a resumption in normal schedules. On behalf of SAA, I would like to express our deep regret at the inconvenience caused to our loyal customers during this industrial dispute. We will continue to assist those passengers, that have still not been able to travel, to reach their intended destination as soon as possible,” said Philip Saunders, SAA’s Chief Commercial Officer.

“At the same time, I would like to express our commitment to return to the skies with renewed passion and energy to serve all our customers. We also thank our airline partners, Mango, Airlink and SA Express, for assisting us during this difficult period,” Saunders added.

South African Airways aircraft photo gallery: