The latest points/ observations on Rossair situation
In my( limited bussiness) experience it is very unlikely that a company the size of "Rossiar contracts" ( charter / engineering and Avionics are not part of the liquidation deal) would ever be liquidated as the banks , collectively owed R 250 mill, would never even recoup even half of their money given the current Rand value of the aircraft, (if they did their losses would probably be large enough to drop share prices and subsequently have the banking peoples heads roll)
The inherent value of the company lies in the value of the company's contracts , which are numerous and by all accounts are still running well, even though they're in U$$ revenue wise. So the banks would keep these going along with pilots and engineers.
It will be important for the banks or potential liquidators to keep the pilots and engineers salaries coming timeously as contract aircrew being what they are, the merest hint of the guys not getting paid under the circumstances will result in abandoned contracts and aircraft all over africa and the middle east, which would not be in the bank/clients/liquidators interests at all.
But this is an absolute worst case scenario.
Even If liquidation proceedings went ahead the company would probably only be put into provisional liquidation, in other words the banks take over the running and ownership of the company and employ some of their own people to sort it out. this would most likely involve a management restructuring of some sort and with any luck, some good financial managment who have peronalities and who dont view their pilots as "the enemy".
Other cost cutting measures will surely be implemented and could involve retrenchments of non-essential staff and facilities.
At the moment it seems like the whole liquidation thing has gone quiet and the banks have come to some sort of agreement amongst themselves to lay off the pressure for a while.
Rumor has it that it was First Rand (FNB) that applied for the liquidation in the first place., though they are owed the smallest portion of the money owed between all the banks.
INVESTEC bank then made a deal with them that Investec would stand surity for the money owed to First Rand ( R80 Mill )and Investec would take over the current chairmans shares and run the company.
By doing this they have definately acquired the most dynamic and skilled bunch of contract aircrew/engineers and operations people on the continent, lets hope they can sort out the fiscal (mis)management and they'll have a winner company.
Currently a new CEO has been appointed who has a good record of turning company's around and who by all accounts seems like a really super chap, although I've only met him briefly.
I think that the whole liquidation thing was blown out of proportion , after all it was only an application. Those Rossairians who remember when Rossair lost DHL west africa contract will remember the mayhem and mass hysteria that fizzled into nothing within 3 weeks and it was all bussiness as usual on other contracts shortly thereafter. Ditto the current situation at the moment.
I wish that management would issue us plebs at the bottom of the company information chain with some usefull information
possibly veryfying or correcting the info that I have written above.
The last spin-doctored internal memo to the staff apart from being uninspiring,stimulating or credible, was more watered down than boarding school soup, we are not so stupid as to accept that at face value, infact a wholly inacurate article in a Jo'burg news paper gave us more information on the situation than anything issued by management ( poor show chaps).
I'm quite certain that Rossair pilots and engineers will come through this ok, after all we're damn good at our jobs ! we run good operations better than our competition, and everyone knows this !!!
"What doesnt kill you makes you stronger !!!"
ROSSAIR 4 EVER !!!
