South African Airways on the brink of bankruptcy!

South African airways is on the brink of bankruptcy and may cease operations in the following weeks according to Citypress. Citypress also states that South African airways are “technically bankrupt” and therefore they won’t publish financial reports for the 2017/18 period to the parliament although it is required by law.

Additionally banks have refused any additional loans after debts reached to R15bn by the end of July this year! The company is set to record a loss of 6 billion rand ($419 million) at the end of the current financial year.

Management is looking to sell its catering unit, Air Chefs, and they are also considering outsourcing or selling SAA cargo the Johannesburg based paper reported.

Source - https://www.bloomberg.com/news/articles/2018-09-23/south-african-airways-mulls-cost-cuts-asset-sale-city-press

Let’s all wish them best of luck and hope they don’t go out of business!

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wow this is really shocking, i hope they don’t go bankrupt.

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Who would take over the fleet and operations?

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They have been close to bankruptcy for many times… but this time their chances of survival are very slim.

That hasn’t been disclosed yet

Wow! That’s a lot of money that they lost! Only time will tell what will happen to them!

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Their Expess fleet was grounded also- this makes sense.

https://onemileatatime.com/south-african-express-grounded/

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Yeah they did lose a lot of Money… and the term “technically bankrupt” is pretty scary too!

But isnt SAA owned by the goverment?

I find this very odd. I always thought that the airline was owned by the South-African goverment. If they have to cease operations, who will then fly South-Africans to Asian/American/European destinations without using a «foreign» airline

So any airline that could possibly buy it out?

Not going to be surprised if any gulf carrier comes to the rescue…Considering the routes SA has to the US non stop. (JFK)

I don’t see an airline buying them out tbh

It would be cool to see a US airline operate an A340. cough cough DELTA cough cough

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Delta with the A346??? If they think the 773 is too much plane, then the A346 is WAY TOO MUCH plane for delta.

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Meh. They might 😉 They use older aircraft so why not?

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Older aircraft on regional operations lol

Could see one of the ME3 airlines purchasing part or all of them

Hahah would be pretty cool to see a Delta Connection or American Eagle and United express with an A340!

The biggest deal breaker would be the 15 billion rand debt. Any company willing to buy SAA will have to pay that off as well