50 SKY SHADES - World aviation news

Business Rescue for SAA – an absurd misdiagnosis

Download: Printable PDF Date: 27 Aug 2016 16:53 (UTC) categories:
Publisher:
Business Rescue for SAA – an absurd misdiagnosis - Finance publisher
Tatjana Obrazcova
Country: South Africa Aircraft: Airplanes Airline: South African

South African Airways (SAA) needs a going concern government guarantee in order to finalise its Annual Financial Statements (AFS). The matter has been brought to the attention of the shareholder representative (National Treasury) and there are extensive, on-going engagements on the matter with the aim of finding a resolution and to provide certainty to all concerned. This does not mean the company is facing liquidation as no such decision has been communicated by the South African government as the sole shareholder of the airline.

Similarly, SAA does not need to be placed under business rescue as the airline is able to and continues to pay its debts as and when they become due and payable. The airline has neither defaulted nor been unable to meet its obligations to service its debts – a key determining factor to justify placing a company under business rescue. Those advocating for business rescue are making an absurd misdiagnosis.

The proponents of these claims appear to be gravely oblivious of the effects these statements have not only on the airline but on the country as well.

It is highly unlikely that there will be service interruptions in September and/or October anywhere on our route network, including Hong Kong, due to the grounding of our aircraft. Where concerns are raised by the relevant regulatory authorities, we continue to engage with them to ensure that we remain compliant and continue to operate.

Image result for South African Airways

We would like to assure all our customers that as part of our compliance and business continuity processes, we constantly ensure that we meet the compliance requirements in all jurisdictions and markets where we operate.

The Board continues to do everything in its power to ensure that SAA gets government guarantees. We have also engaged with the shareholder on the licensing issue which also relies on shareholder financial assurances for its renewal by the end of September.

Whilst it is true that the airline’s balance sheet needs to be strengthened, it is important to understand that its funding requirements, whether in the form of guarantees by the shareholder or a cash injection (which the airline has not received for more than a decade), are intended for future and not current or immediate obligations.

SAA has a sound professional relationship with its shareholder representative, Finance Ministry and the National Treasury. We have never understood the relationship to be personal in any way between ourselves to a point where it is characterised as a rift between the Minister and the Board chairperson at SAA, Ms Dudu Myeni. SAA reject such averments as they have no basis in fact. They appear to be driven by those with an agenda aimed at driving a wedge between the Minister and Ms Myeni. They must not be allowed to succeed.

The airline would also like to reiterate that SAA Board members do not appoint themselves. Board members serve at the invitation of the shareholder representative. It follows that any Board rotations and/or new appointments to serve, is a prerogative of the shareholder representative.

The airline is resilient and has overcome challenges in the past – consequently, we remain confident that resolutions on these matters will soon be found.

Image result for South African Airways



Loading comments for Business Rescue for SAA – an absurd misdiagnosis...


Recommended

AMAC Aerospace - busy July - Pre-Purchase Inspection, AOG support and re-deliveries

A privately-owned Boeing B737 came to AMAC Aerospace in Basel, Switzerland to undergo a Pre-Purchase Inspection (‘PPI’). A 144-month check, Service Bulletins and Airworthiness Directi...

Second quarter sees increased executive jet activity - ACC Aviation

ACC Aviation, the global aviation services group, marked its 20th anniversary in June, having enjoyed a solid second quarter. The last three months have been dominated by busy executive jet chart...

All In Aviation purchases the ALSIM SR FTD

The sale of ALSIM ALSR FTD was concluded on display at EAA AirVenture Oshkosh 2022. All In Aviation became the first independent flight school in America to acquire an ALSIM SR FTD....

Deadline approaches for Business Aviation Scholarships from IADA

The International Aircraft Dealers Association is accepting applications through Sept. 1 from business aviation students for scholarships. Grants funded by the IADA Foundation will range from $1,000 t...

The drones news