SAA cancels some flights as airline fights for survival

News

Op-Ed: Why the COVID-19 pandemic is no time for fiscal distancing

"Extraordinary times call for extraordinary measures. As such, it can no longer be business as usual".- Akinwumi Adesina, President of the African Development Bank

Can Cruise Lines Recover From Coronavirus?

The COVID-19 outbreak has laid waste to entire sectors of the global economy, but none faster than the cruise business. The pandemic has basically shut it down with the three largest publicly traded cruise companies suspending some, if not all, of th

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

By Alexander Winning

JOHANNESBURG, Jan 21 (Reuters) – South African Airways (SAA) has cancelled some domestic flights between its Johannesburg hub and Cape Town and Durban, and some international flights to Munich, the state airline said on Tuesday, as it fights for its survival.

SAA is running short of cash after the government failed to provide 2 billion rand ($137 million) of emergency funding it promised when the airline entered a form of bankruptcy protection last month.

“These cancellations represent a responsible strategy to conserve cash and optimise the airline’s position,” SAA said in a statement, adding that it was working to accommodate affected customers on other flights.

“SAA will be reviewing further possible flight schedule amendments over the coming days.”

The airline is one of several South African state entities, including power company Eskom, mired in financial crisis after nearly a decade of mismanagement.

State companies’ financial problems are seen as one of the biggest threats to Africa’s most industrialised economy and have helped push the country’s credit rating to the brink of junk status.

SAA said flight cancellations on the domestic and Munich routes were planned until Friday.

A booking system used by travel agents showed that 19 SAA flights had been cancelled so far, according to a representative of a local travel agent.

The airline’s business rescue practitioners held talks with the government at the weekend to try to find a solution on the promised funding, but failed to reach a breakthrough.

On Sunday, the public enterprises ministry said it was still talking with the National Treasury to raise funds for SAA.

Last week, a senior trade union official said SAA might have to suspend some flights and delay salary payments if the government didn’t come up with a plan to provide the 2 billion rand soon.

($1 = 14.5682 rand)

(Reporting by Alexander Winning; Editing by Jason Neely and Barbara Lewis)

- Advertisement -
- Advertisement -

Featured

SA’s banks reveal how small businesses can apply for the R1bn Oppenheimer fund

Three of South Africa’s major banks have revealed to CNBC Africa how small businesses can apply for funding from the South Africa Future Trust. This is what they had to say.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

Applications open for Rupert family’s R1bn fund, here’s how to apply

As small businesses around South Africa feel the weight of the country’s 21 day lockdown and the COVID-19 pandemic, BUSINESS/PARTNERS has revealed...

How to protect your mental health amid the coronovirus pandemic

The coronovirus pandemic is causing high levels of anxiety all over the world. For some, coping with lockdowns hasn’t been easy and there are concerns social distancing and isolation could negatively impact mental health. Dr Linda Blokland, Acting Head of Department at the Student Counselling Unit at the University of Pretoria joins CNBC Africa for more.

Altron eyes London listing for Bytes UK

Altron plans to separate its UK assets from its African operations via a London listing. The technology group says the listing, still at planning stage will unlock value for its shareholders. Mteto Nyati, CEO Altron joins CNBC Africa for more.

Siemens donates R500, 000 towards fight against COVID-19 in South Africa

In a bid to help alleviate the impact of COVID-19 in South Africa, the Southern and Eastern African division of the multinational conglomerate, Siemens, has donated R500, 000 to the Solidarity Response Fund.
- Advertisement -

More Articles Like This

- Advertisement -