× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

South African Airways cancels flights in fight for survival

NEWS
By Reuters | January 21st 2020

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.

Share this story
British PM Boris Johnson promises to Africa
Aware of many suitors angling for various opportunities in Africa he talked of UK’s strengths at an event attended by over 20 African countries
Survey: Why 40 pc of workers want to quit their jobs
More than half of 18 to 25 year-olds in the workforce are considering quitting their job. And they are not the only ones.
.
RECOMMENDED NEWS
Feedback