It appears the end is near for South African Airways as the airline continues to deal with accumulating financial losses. This video covers the details of South African Airways' potential collapse. ✈ Ishrion Aviation is an Aviation Channel bringing you the latest aviation news and developments and aviation analysis to your fingertips.
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South African Airways A340-600 Frankfurt by mylosairplaefan:
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South African Airways A340-600 "Star Alliance" livery by AviationMitch - Licensed by Creative Commons:
South African Airways A350 by SAA
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Transcript:
Over a week ago, it was revealed that South African Airways was denied funding by the South African government. Now, the airline is also planning to fire all staff.
South African Airways is offering severance packages to all 4,700 employees starting at the end of April. The employees will receive one month of pay, along with one week of pay for every year of service.
Due to COVID-19 causing air travel demand to plummet, South African Airways suspended all international flights but recently resumed limited service along with repatriation flights.
The airline has been financially struggling for years as it last made a profit in 2011. Since then, South African Airways has relied on several bailouts.
Specifically in the past six years, South African Airways accumulated $1.4 billion USD in losses which is continuing to increase.
In December 2019, the airline went into “business rescue” as part of restructuring with administrators. However, they now believe a successful recovery is unlikely.
As a result of this expected collapse, South African Airways’ team of administrators is planning to sell the airline’s assets to repay creditors.
South African Airways has made numerous attempts to generate revenue, such as trying to sell its fleet of Airbus A340s.
In the past few months, South African Airways took delivery of four Airbus A350-900s in order to modernize its fleet and increase efficiency.
Despite receiving new aircraft, the airline slashed numerous long-haul and regional routes in February 2020 as the airline continuously lost money.
Some reports suggest South African Airways is expected to be replaced by a “financially viable and competitive airline.”
Unfortunately, South African Airways may be the next airline to collapse as a result of COVID-19. Two options appear to be left - wind-down or liquidate.
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#SouthAfricanAirways #SouthAfricanAirwaysCollapse #SAA
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