
<p>JOHANNESBURG (Reuters) &#8211; State airline South African Airways (SAA) has cancelled “nearly all” flights scheduled for Friday because of a strike over wage increases planned by a majority of employees, television news channel eNCA said.</p>



<p>Unions representing about 3,000 of its 5,000-strong workforce said on Wednesday that cabin crew and other workers at SAA would strike over the airline’s refusal of salary hikes and a plan to cut more than 900 jobs.</p>



<p>According to the report, only flights directly operated by SAA would be affected. Flights by subsidiaries Mango, SA Express and SA Air Link, as well as those of private operators, would not be affected.</p>



<p>An SAA spokesperson did not immediately responded to telephone calls and emailed questions from Reuters seeking details about the cancellations and how long they would last.</p>



<p>Unions say the strike will begin at 4 a.m. (0200 GMT) on Friday. They are calling on SAA’s check-in, ticket sales, head office, technical staff and ground staff to take part.</p>



<p>The state-owned airline flies around 6.8 million passengers annually to six continents with dedicated routes to New York, London and Hong Kong among its eight international offerings.</p>



<p>But it has struggled in recent years, failing to turn a profit since 2011 while relying on state bailouts to fund a growing financing gap.</p>



<p>The airline is also without a permanent chief executive and has yet to file annual results for the two most recent financial years because of concerns about its viability as a business.</p>



<p>Reporting by Mfuneko Toyana; Editing by Clarence Fernandez and Christopher Cushing</p>


South Africa’s SAA cancels flights, here’s why


<p>By Kopano Gumbi, CNBC Africa reporter </p>



<p>State-owned entities are on the chopping block. The minister of finance, Tito Mboweni says the state will be selling some assets and that discussions are underway to re-evaluate the countries portfolio.</p>



<p><strong>READ:</strong> <a href="https://www.cnbcafrica.com/zdnl-mc/2019/10/30/sa-mtbps2019-finance-minister-tito-mbowenis-full-speech/">SA #MTBPS2019: Finance Minister Tito Mboweni’s full speech</a></p>



<p>“We have an agreement that we are selling assets but we won’t tell you which ones,” said the minister ahead of his medium-term budget policy statement. He says the government has between now and the budget speech of February 2020 to negotiate which assets will have to be let go. The minister said South Africa needs to have a serious conversation, with no grand standing, if it is to get back on the growth path.</p>



<p><strong>READ:</strong> <a href="https://www.cnbcafrica.com/news/financial/2019/10/30/mtbps2019-low-growth-high-spend-continues-to-plague-sa-economy-but-saa-eskom-get-more-funds/">#MTBPS2019: Low growth, high spend continues to plague SA economy, but SAA, Eskom get more funds</a></p>



<p>The country currently has a tax collection
shortfall of R53 billion and a widening budget deficit. In addition, South
Africa is struggling with a runaway debt-to-GDP ratio, which the minister
called unsustainably high. Releasing some assets would inject some much needed
liquidity into the state’s budget and relieve the burden of constantly bailing
out unsuccessful state owned companies.</p>



<p>“Maybe the time has come to consider
closing or selling SA Express,” said the minister, “it may be an interesting
case study, if in future you want to close something else.” SAA and SA Express
have been struggling to remain a going concern. The airline requires R21 billion
in order to stay in the sky but the government is only willing to extend R5.5
billion to SAA and R300 million to SA Express. </p>



<p>Public expenditure needs to be reduced by
R250 billion a year in order to bring down the countries debt-to-GDP ratio to
an acceptable level, the minister advised. &nbsp;But the minister admits that getting to this
point would require very decisive actions.</p>


SA #MTBPS2019: We are selling assets Finance Minister Tito Mboweni declares


<p><strong>By Kopano Gumbi, reporter at CNBC Africa </strong></p>



<p>In his inaugural medium-term budget policy statement, Minister of Finance Tito Mboweni had the difficult task of explaining to South Africans and the broader investment community how each one of the levers&#8211; save, spend and grow&#8211; would be pulled, and in what ratio, to arrest fiscal wastage, reignite economic growth, stave off a sovereign downgrade and improve the lives of 56 million South <a>Africans</a>. </p>



<p><strong>READ:</strong><a href="https://www.cnbcafrica.com/zdnl-mc/2019/10/30/sa-mtbps2019-finance-minister-tito-mbowenis-full-speech/">SA #MTBPS2019: Finance Minister Tito Mboweni’s full speech</a></p>



<p>The South African economy has struggled to recover after over a decade of low and jobless growth. The downward spiral, partly initiated by the global financial crisis, was exacerbated by a failure to implement structural reforms, policy uncertainty and wide spread looting. GDP growth since 2010 has averaged at 1.8 percent. Lagging far behind continental peers of similar market sizes and economic activity. South Africa’s debt-to-GDP ratio is currently at an unsustainably high, 56.7 percent, with outlooks estimating up to 80 percent in the next decade, if nothing changes. </p>



<p><strong>READ:</strong><a href="https://www.cnbcafrica.com/news/financial/2019/10/30/mtbps2019-low-growth-high-spend-continues-to-plague-sa-economy-but-saa-eskom-get-more-funds/">#MTBPS2019: Low growth, high spend continues to plague SA economy, but SAA, Eskom get more funds</a></p>



<p>“Our
problem is that we spend more than we earn. It is as simple as that,” said the
minister, while delivering his speech in parliament. And while he tried to
assure the public that this bad habit would soon be kicked, the government
finds itself in the not so simple situation of needing to save, spend and grow
the economy.</p>



<p>GDP growth has been revised down for the year
to 0.5 percent. In February this year growth was forecast at 1.5 percent but
was later revised down to 0.6 percent. Unemployment is at the highest it has
been in over 10 years, currently at 29.1 percent. In this MTBPS, the government
acknowledges that there is little chance that the 9.4 million unemployed adults
will find a job. </p>



<p>Tax revenue collection continued to be constrained. The government expects a collection shortfall of R53 billion this year and R84 billion next year. The majority of tax, 38 percent, is collected from personal income taxes, 16.7% from company taxes and just over a quarter from Value-Added Tax. </p>



<p>“We
must also wean state-owned companies off the national budget. They must learn
to stand on their own feet,” said Mboweni during his speech. Currently this is
easier said than done. The state has committed to spend an additional R60
billion this year to make sure delinquent state-owned entities remain going
concerns. </p>



<p>Power
utility Eskom, is seen as the biggest risk to the South African economy and
will receive an extra R26 billion in this financial year. &nbsp;This is in addition to the R23 billion it
received at the beginning of the year. Smaller state-owned entities will
receive R11 billion and R450 million will be given to support an increase in
student housing. On top of that, the National Prosecuting Authority will receive
R1.3 billion to continue its work, including prosecuting state capture crimes.
And the South Africa Revenue Services will receive R1 billion over two years. </p>



<p>Another state-owned entity which has failed to
take off is struggling airline South African Airways and its subsidiary SA
Express. The companies are currently discussing the possibility of a merger as
well as equity buyouts from the private sector. </p>



<p>“We have essentially chosen to subsidise the
middle class and wealthy flying around the country and other parts of the
world,” said Mboweni, “rather than the ordinary workers who sit in old trains
from the townships every day, often getting stuck and being late for work.” The
minister has been clear in that he doesn’t see the value of having a state-controlled
airline, and yet the national carrier will receive R5.5 billion in a bailout
this year. </p>



<p>Savings efforts have been muted, the minister says
that efforts to reduce spend and save have not materialised. Stricter measures
around cabinet and provincial executive salaries have been proposed, as well as
the controversial e-Toll system remaining as an additional revenue collection
stream.</p>



<p>Whether
the minister’s stern words will be enough to stave off a sovereign downgrade,
remains to be seen.&nbsp; Moody’s is the last
of the international ratings agencies to keep South Africa at investment grade.
They are expected to release a note on our ratings on November 1, 2019. </p>



<p>“We
shall return to this House next February with the nation’s beloved Aloe Ferox
plant having flourished and show a government at work,” said the minister in
closing. </p>



<hr class="wp-block-separator"/>


#MTBPS2019: Low growth, high spend continues to plague SA economy, but SAA, Eskom get more funds

SA #MTBPS2019: Finance Minister Tito Mboweni’s full speech

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</div>
<p>South African Airways has appointed Zuks Ramasia acting CEO to replace outgoing CEO Vuyani Jarana. She is the current General Manager of operations. The embattled airline has begun a domestic and global search for a new CEO, it said during a press conference. It is also looking to strengthen its board and has appointed Adam Voss to SAA technical. CNBC Africa reporter Karabo Letlhatlha spoke to SAA Board Member, Martin Kingston for more.</p>


SAA appoints Zuks Ramasia as acting CEO, commit to turnaround plan

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</div>
<p>South African Airways CEO Vuyani Jarana resigned from his post as CEO of the State owned enterprise. The board of directors are tasked with the tough job to appointing a new leader to navigate the SOE out of its mounting debt. Joining CNBC Africa for more on the plight of SAA is Wayne Duvenage the CEO of Outa.</p>


Outa’s Wayne Duvenage on SAA’s options for a turnaround

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</div>
<p>The future of South Africa after the dark days of Zuma’s reign is slowly coming to an end.</p>


Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive

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</div>
<p>This year’s budget is less about “give me some more” and more about “let’s transform the business to be more accountable” SAA’s CEO Vuyani Jarana told CNBC Africa’s Fifi Peters outside parliament today. He added that although there was no express allocation for SAA, the Budget did provide a framework to address the challenge of transforming SOEs.</p>


SAA’s Vuyani Jarana on key takeaways from #Budget2019

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</div>
<p>Struggling airline South African Airways is planning to be split into three business units as part of their restructuring plan, CNBC Africa reporter Karabo Letlhatlha gives more insight.</p>


SAA to split into three units


<p>JOHANNESBURG (Reuters) &#8211; South African Airways (SAA) said on Tuesday that it had signed a partnership deal with Emirates airline which would see the two firms expand an existing codeshare agreement and work on other areas of cooperation.</p>



<p>South African President Cyril Ramaphosa has been at pains to stabilise struggling state-run firms like SAA, which has not generated a profit since 2011.</p>



<p>Reporting by Alexander Winning; Editing by Adrian Croft</p>


SAA and Emirates sign partnership deal, what you need to know

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</div>
<p>Glen Smith, Executive Member from the South African Airways Pilots Association (SAAPA) has expressed confidence in CEO Vuyani Jarana in turning around the fortunes of the troubled airliner. He joins CNBC Africa for more.</p>


SAAPA backs CEO Jarana’s turnaround strategy

<p>CAPE TOWN (Reuters) &#8211; South Africa’s cash-strapped state airline will need a total of 7.5 billion rand ($540 million) from next month to fund day-to-day operations into 2019, a presentation to a parliamentary committee by the airline showed on Tuesday.</p>
<p>SAA, which has not generated a profit since 2011, survives on state guarantees and is regularly cited by credit ratings agencies as a drain on the government purse.</p>
<p>It has drawn up an austere turnaround plan that includes cutting jobs and routes in effort to turn a profit by 2021 and convince lenders to restore credit lines.</p>
<p>The airline said lenders have refused to lend the company 3.5 billion rand to plug a liquidity hole from December unless they received additional commitments from the government, the presentation showed.</p>
<p>In addition, the national carrier will need 4 billion rand ($288 million) from March next year, the presentation showed.</p>
<p>“Currently we don’t have an optimal capital structure and as a result of that we are dependent on debt which is not good&#8230; the banks are pushing now for much more better support from the shareholder to put in place for us,” said Deon Fredericks, SAA’s interim chief financial officer.</p>
<p>SAA is expected to make a 5.2 billion rand loss in the 2019 financial year and another 1.9 billion in 2020 before swinging into profit a year later, the presentation showed.</p>
<p>($1 = 13.8763 rand)</p>
<p>Reporting by Wendell Roelf; Editing by James Macharia</p>


SAA needs $540 million from next month to fund day-to-day operations

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</div>
<p>South African businesses especially state owned entities continuously battle with making profits, with introduction of various turnaround strategies seemingly not taking off. One global group which is business of assisting companies ensure their turnaround strategies are a success is Turnaround Management Association. Bruce Berry, CEO of Turnaround Management Association Southern Africa joins CNBC Africa to talk about how they ensure such happens.</p>


Turnaround strategies made a success by a global association

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</div>
<p>CNBC Africa’s Lubabalo Mashiqana spoke to South African Airways CEO Vuyani Jarana, about the turnaround strategy for the troubled airline, as he reflects on the past year at the helm of the national carrier.</p>


SAA CEO Vuyani Jarana on saving the airline

<p>JOHANNESBURG (Reuters) &#8211; South Africa’s new Finance Minister Tito Mboweni said on Thursday that struggling state-run South African Airways (SAA) should be closed down, adding that decisions over the future of the state carrier were not under his remit.</p>
<p>SAA, which has not generated a profit since 2011, survives on state guarantees and is regularly cited by credit ratings agencies as a drain on the government purse.</p>
<p>“It’s loss-making, we are unlikely to sort out the situation, so my view would be close it down,” Mboweni told an investor conference in New York televised live on South African public broadcaster SABC.</p>
<p>“Why I say close it down is because it’s unlikely that you are going to find any private sector equity partner who will come join this asset,” Mboweni added.</p>
<p>In August, President Cyril Ramaphosa transferred oversight of SAA to the public enterprises ministry which is led by Pravin Gordhan from the finance ministry. Ramaphosa has pledged to revive struggling state firms, including SAA.</p>
<p>SAA CEO Vuyani Jarana has said he is mapping out a punishing austerity plan to turn the flag carrier around. He has said layoffs and other cuts were unavoidable.</p>
<p>In a dramatic fall from grace over the past decade, SAA has lost its place as Africa’s biggest airline and a symbol of patriotic pride to become a source of frustration for taxpayers who have forked out more than 30 billion rand ($2 billion) since 2012 to keep it in the air.</p>
<p>($1 = 14.4700 rand)</p>
<p>Reporting by Olivia Kumwenda-Mtambo; Writing by Joe Brock; Editing by James Macharia</p>


Should South African Airways (SAA) be closed down? Why Mboweni thinks it should…

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<p>According to reports, SA Express reportedly paid R2.4 billion to music promoter, Eldrige Mothlake after he was awarded a three-year contract to supply the airline with fuel. Joining me now for more is Unathi Henama, Tourism Lecturer at TUT.</p>


SA Express allegedly paid R2.4 billion to music promoter

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<p>One of South Africa’s biggest loss making state owned enterprise has launched a highly ambitious rescue plan to ease pressure on the taxpayer. For more CNBC Africa’s Rofhiwa Madzena was spoke to Vuyani Jarana, CEO, South African Airways.</p>


SAA

South Africa’s SAA cancels flights, here’s why

SA #MTBPS2019: We are selling assets Finance Minister Tito Mboweni declares

#MTBPS2019: Low growth, high spend continues to plague SA economy, but SAA, Eskom get more funds

SA #MTBPS2019: Finance Minister Tito Mboweni’s full speech

SAA appoints Zuks Ramasia as acting CEO, commit to turnaround plan

Outa’s Wayne Duvenage on SAA’s options for a turnaround

Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive

SAA’s Vuyani Jarana on key takeaways from #Budget2019

SAA to split into three units

SAA and Emirates sign partnership deal, what you need to know

SAAPA backs CEO Jarana’s turnaround strategy

SAA needs $540 million from next month to fund day-to-day operations

Turnaround strategies made a success by a global association

SAA CEO Vuyani Jarana on saving the airline

Should South African Airways (SAA) be closed down? Why Mboweni thinks it should…

SA Express allegedly paid R2.4 billion to music promoter

Troubled SAA announces ambitious rescue plan

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SAA

South Africa’s SAA cancels flights, here’s why

SA #MTBPS2019: We are selling assets Finance Minister Tito Mboweni declares

#MTBPS2019: Low growth, high spend continues to plague SA economy, but SAA, Eskom get more funds

SA #MTBPS2019: Finance Minister Tito Mboweni’s full speech

SAA appoints Zuks Ramasia as acting CEO, commit to turnaround plan

Outa’s Wayne Duvenage on SAA’s options for a turnaround

Trevor Manuel speaks about the Zuma years, damage done to SOEs and Ramaphosa’s investment drive

SAA’s Vuyani Jarana on key takeaways from #Budget2019

SAA to split into three units

SAA and Emirates sign partnership deal, what you need to know

SAAPA backs CEO Jarana’s turnaround strategy

SAA needs $540 million from next month to fund day-to-day operations

Turnaround strategies made a success by a global association

SAA CEO Vuyani Jarana on saving the airline

Should South African Airways (SAA) be closed down? Why Mboweni thinks it should…

SA Express allegedly paid R2.4 billion to music promoter

Troubled SAA announces ambitious rescue plan

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