Warning: South African Airlines technically trading insolvent

4 replies

kimshep

Qantas - Qantas Frequent Flyer

Member since 11 Oct 2014

Total posts 340

There appears to be little discussion in the Australian marketplace regarding the above bankruptcy (sans a formal filing). As a 'heads up' the following links detail issues with the carrier.

If you are flying from Perth to South Africa over the next few months, it may be wise for you to be aware of the situation and make sure that you have adequate travel insurance and flexibility.

http://www.bbc.com/news/business-40813582 - South African Airways On The Verge of Bankruptcy

https://www.businesslive.co.za/bd/companies/transport-and-tourism/2017-08-03-staff-salaries-may-not-be-paid-as-broke-saa-teeters/ - somewhat self-explanatory.

btaus

Qantas - Qantas Frequent Flyer

Member since 15 Dec 2016

Total posts 171

Poor management teams and their poor decisions of buying A340s (instead of 777s) failed the airline, hence bankruptcy.

A340s is very inefficient compared to 777s, A340-600 carry less passengers but costs more fuel than 777-300ER.

Last editedby btaus at Sep 28, 2017, 10:19 AM.

Dredgy

Qantas - Qantas Frequent Flyer

Member since 02 Apr 2017

Total posts 167

Poor management teams and their poor decisions of buying A340s (instead of 777s) failed the airline, hence bankruptcy.
A340s is very inefficient compared to 777s, A340-600 carry less passengers but costs more fuel than 777-300ER.
Last edited by btaus at Sep 28, 2017, 10.19 AM.

Actually the fuel costs of an A340 aren't that much more. Their A340 routes tend to be the only routes actually making money - Perth is a profitable route for them.

They're hamstrung by government interference and inefficient infra-Africa operations. They'd be salvageable if the government would stop appointing their friends as upper management.

oruspicarous

Qantas - Qantas Frequent Flyer

Member since 18 Jun 2015

Total posts 30

Hope they get privatised, cant wait for whats to come for african travel if it happens


Traveller14

Member since 17 Sep 2015

Total posts 73

Am I correct to suggest that the fares to Africa ex Oz on a per kilometre basis (nautical mile if you must) are far more expensive than to South America? I reckon fares to the latter have declined in recent years, but to the former flights remain expensive whichever airline one chooses.

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