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SAA unable to pay November salaries
Letter to SAA Staff.
Thursday | 21 November 2019 Dear SAA Colleagues, Delayed Payment of November 2019 Salaries SAA will unfortunately not be in a position to fulfill salary obligations to employees on the scheduled payment dates. SAA continues on a critical and sensitive path to secure R2 billion working capital from lenders to fund the day-to-day operations. SAA has not yet achieved this critical milestone. Furthermore, any funding from the lenders will need to be supported by a government guarantee that SAA will have to obtain. The current negative sentiment surrounding SAA and ongoing operational challenges have exasperated efforts to reach this critical funding milestone. SAA leadership continues to engage with the Shareholder and lenders to secure the required funding and to access the current approved guarantees. SAA will keep employees updated regarding the exact date of payment for November salaries. In the interim, you are advised to make arrangements with your financial service provider in respect of your scheduled monthly debit orders. We know as a company that we have an obligation to pay salaries timeously and in full. We apologise sincerely for the delay and wish to give assurance that SAA leadership is working tirelessly to secure funding to pay salaries to all employees as soon as possible. We acknowledge that this is a very difficult time and on behalf of SAA leadership, I wish to express our sincere gratitude to all employees who always ensure that SAA continues to operate in the best interest of our customers and SAA’s key stakeholders. Regards / Kamnandi, Zuks Ramasia Acting Chief Executive Officer |
Originally Posted by Unhooked
(Post 10628441)
SAA has been systematically destroyed by:
Political interference from uneducated arrogant individuals Cadre deployment BBBEE & affirmative action Erroneous procurement contracts Theft on a grand scale Socialist unions 50% over staffed work force (see point 2) Thank you ANC comrades Add SAA to the list of every SOE that you have destroyed (see point 1) Feel free to add.... |
Originally Posted by Old King Coal
(Post 10623511)
Letter to SAA Staff.
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How much longer will this idiocy continue.
There are only 2 possible solutions to the SAA problem, either privatise it or close it. No amount of money thrown at the problem will solve anything. Politicians simply do not have the courage or the ability to slash costs by getting rid of the massive overstaffing and free riding political appointees. Meanwhile passengers are deserting to other airlines because customer service has sunk from bad to abysmal. <Insert Python dead parrot sketch here> |
Leading travel agents and insurers no longer prepared to underwrite tickets on SAA, due to the risk of insolvency: https://www.fin24.com/Companies/Financial-Services/santam-confirms-withdrawal-of-insolvency-benefit-cover-on-saa-tickets-20191129
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How long does anyone reckon, before the `oil man` pulls the plug??..Then it is game over
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SAA
It is sad to see a once highly reputable airline going down the drain.
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Originally Posted by BEA 71
(Post 10630383)
It is sad to see a once highly reputable airline going down the drain.
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The government will bail them out again, there are too many vested interests in the airline for it to go down. It's a cash cow for the politicians, overpriced supply contracts, "commissions", free tickets and jobs for the boys. However this can't go on indefinitely as the government is virtually broke as well, all the state enterprises have been looted and the debt at the electricity supply commission is threatening the entire economy if it collapses and the supply goes down.
The airline is a reflection of the current state of the country. |
Just guessing, but given the probable circumstances, would that mean cashing advance for fuel, air nav charges, terminal fees, cleaning and handling and a whole heap of other stuff?
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I’m wondering how the staff feel about it. I assume Cabin Crew and Flight Deck Crew are currently working for free? |
Just guessing, but given the probable circumstances, would that mean cashing advance for fuel, air nav charges, terminal fees, cleaning and handling and a whole heap of other stuff? |
SAA stats at the bottom of the table
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That’s a lot of employees per aircraft! I’m sure they’re all qualified and not hired because their political connections or family nepotism. |
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Long-delayed developments starting to unfold: https://www.fin24.com/Companies/Indu...rders-20191204
President Cyril Ramaphosa has decided that cash-strapped flag carrier South African Airways must go into voluntary business rescue, according to a letter signed by presidency director-general Cassius Lubisi. The letter, dated December 4, says Cabinet initially adopted an approach that entailed restructuring the struggling airline. However, it adds that "developments have now necessitated a change of approach" to address the "dire situation". "In this regard, SAA will have to urgently go into voluntary business rescue," it says. Business rescue, under Chapter 6 of the Companies Act, allows South African companies in "financial distress" or trading in insolvent circumstances to file for business rescue. Once a resolution has been adopted, a business rescue practitioner is appointed to reorganise and restructure the business. Parliament's oversight committee on public accounts, which was set to meet with the airline's leadership on Thursday, welcomed the business rescue announcement. "The committee has been informed that this is the only viable route to avoid an uncontrolled implosion of the national airline. Scopa is made to understand that an administrator will move in and the board will effectively not be in charge," said its chairperson Mkhuleko Hlengwa in a statement. |
Hopefully the first action of Business Rescue will be the Cyril & Co will ensure that the staff are paid! |
A review of the vanity rather than the sanity routes must be in order although whether the administrators can cut through the nepotism and corruption is another question.
Any confidence amongst the real, full, fare paying public is surely gone. IG |
So sad to see what was once a great airline reach the point of such distress. I lived in SA during the 80s and had to make regular trips back to the UK. Back then there wasn't a great choice of airlines to choose from on the route but I would use SAA before BA.
The ANC have a lot to answer for... |
Holy sh*t.
That letter = "SAA is about to go bankrupt - let's shut the doors so the creditors can't get in!!" What a disgrace that such a magnificent airline has been trashed so badly. Shame shame shame. |
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