SAA conquers Africa

[SN30952]

SAA is not doing as good as some may think: Transnet, their holding company, is not happy at all with their results, according to www.travelinfo.co.za (news from 30th August).

I read that too, but Felix, Fluglotse2000, could not know that when he posted his item (Aug 04)
SAA acquired shares and a market positions in Africa due to its ability to acquire funding for its investments. A little bit in privatised BA style: killing or suffocating the competion. In fact they are kicking with borrowed tools...

[sn26567]

I've read somewhere that SAA could abandon the order of A320 family aircrafts

Yes, indeed, on Luchtzak: https://www.aviation24.be/article5341.html

let's hope SAA survives and acquires A380's wich they could fly into BRU...

keep dreaming my friend....

Chris, you are not alone!

[waldova]

previous bookyear's loss is R421m = 85 mio euro
last bookyear's loss = R16,3bn = 2.0375 mio euro

Can Coleman Andrews then give back his bonus! He doesn't need such an amount of money and it would help the company a lot. If every CEO does this isn't it normal that a company makes losses!!!

[SN30952]

SAA is not doing as good as some may think

In fact they are kicking with borrowed tools...

South African Airways parent Transnet said its chief financial officer, Sindi Mabaso, had resigned, effective from the end of 2004 NOV.

Transnet, which announced a RAND6.3-billion = 781,783,000 Euro annual loss last Friday that prompted the government to replace most of its board, said Mabaso would assist in a hand-over process before leaving.

The group's loss came after a huge hedge-book loss at South African Airways. Transnet closed the hedge book at the end of 2004 JUN at a cost of RAND5.9-billion = 732,146,000 Euro.

"Zo kan ik het ook", not Afrkaans for "That way I can do too!"
:heyyou: : Even in South Afica, airlines cannot show 'black' figures...
:heyyou:
Yes, I earned tahet one!

[Avro]

let's hope SAA survives and acquires A380's wich they could fly into BRU...

keep dreaming my friend....

Chris, you are not alone!

What do you mean by that

[sn26567]

keep dreaming my friend....

Chris, you are not alone!

What do you mean by that

We have at least one other dreamer on this website

[Avro]

We have at least one other dreamer on this website

LOL - It seems you didn't forget

[LX-LGX]

it seems SAA has lost another battle:

VIRGIN Atlantic Airways has confirmed its appointment as Nigeria’s new technical partner and investor in new operator Virgin Nigeria Airlines.
South African Airways (SAA) was until recently a strong contender in the race. Nigerian aviation minister Isa Yuguda has confirmed the agreement which will see Virgin taking a 49% stake in the new operator while Nigerian investors will hold the remaining 51%.

(source: travelinfo.co.za - 02 Sept)

[vflies]

But aren't Virgin and SAA also linked by various agreements (frequent flyer, code share, handling...)?

VFlies

[LX-LGX]

No VFlies: SAA and Virgin are competitors, and they only have one partner in common: BMI, which they both need as feeder to London. Virgin uses Nationwide Airlines as domestic partner in South Africa (when SN was flying into JNB, most of the Nationwide planes were in SN colours!).

Partners from SAA are: Air Tanzania, BMI, Cathay, Delta, El Al, Emirates, Lufthansa, Qantas, SAS, SriLankan, Thai and Varig. And of course South African Express, South African Airlink and Swaziland Airlink.

Partners from Virgin are: BMI, Continental, Malaysia, Nationwide Airlines and Singapore Airlines.

[LX-LGX]

Business Day, a South African financial newspaper today reports:

SAA's former boss paid out R3.6m

Former South African Airways (SAA) boss Andre Viljoen received a termination package of R3.6-million when he left the airline at the end of last month. According to Transnet's annual report for the year ended March, Viljoen also received R3.945-million in remuneration, which included a R2.2-million salary and a performance bonus of R975 000. Cumulatively, he left the airline with R7.55-million. His sudden resignation in July came two years before the end of his contract in 2006. SAA gave no reason for his early departure, except to say that the separation was "amicable". Both SAA and government officials said Viljoen departure was not linked to the airline's R15-billion losses in the hedge book. The huge losses incurred in the past two years had at one stage plunged the airline into technical insolvency forcing government to come to its rescue by providing R7-billion in guarantees to creditors. Transnet also provided a cash injection of R6.1-billion to help the national carrier stay aloft. Viljoen recently told Business Day: "My resignation has nothing to do with the SAA hedge book loss at all. I am leaving for personal reasons only. "SAA's hedge book resulted from a Transnet policy and (was) approved by the SAA board. I did not wake up one morning and decide to go on a hedging spree." The SAA board has subsequently been reshuffled while the Transnet board was dissolved.

"he left the airline with R7-55m means": they've paid him 943.000 euro's to leave. Life in South Africa can be regarded as some 25 % cheaper then in Belgium = hy sal lekker kan boer êrens in die Vrystaat!

[vflies]

No VFlies: SAA and Virgin are competitors, and they only have one partner in common: BMI, which they both need as feeder to London. Virgin uses Nationwide Airlines as domestic partner in South Africa (when SN was flying into JNB, most of the Nationwide planes were in SN colours!).

Partners from SAA are: Air Tanzania, BMI, Cathay, Delta, El Al, Emirates, Lufthansa, Qantas, SAS, SriLankan, Thai and Varig. And of course South African Express, South African Airlink and Swaziland Airlink.

Partners from Virgin are: BMI, Continental, Malaysia, Nationwide Airlines and Singapore Airlines.

I'm afraid you're not as documented as you pretend to be, LX-LGX...
See the following press released dated June 23rd:
http://www.virgin-atlantic.com/en/gb/al ... 230604.jsp

Virgin Atlantic Airways and South African Airways (SAA) have entered into a commercial co-operation that includes a Codeshare Agreement and a fully reciprocal Frequent Flyer Programme partnership.

And don't forget that Nationwide has also become a competitor since they started their intl service to LGW...

Aviation alliances change fast and often...

VFlies

[LX-LGX]

VFlies, thanks: I didn't knew about that new code sharing agreement. But I do not pretend to know all about SAA: that's why I usually add my source to a reply. What I do know is that code sharing decisions from top management sometimes are rejected by their own sales department. They simply add a "not valid on code sharing flights" in their touroperator or broker contract rates. So let's wait and see what's going to happen with SA and VS.

Nationwide: their domestic and regional network probably is more important for them then the LGW-route. They will loose some international passengers to Virgin, but Virgin gives them local add on pax. It's all a matter of interline rates, and some SA companies are cheaper then others: Virgin today has good rates from Nationwide, but as from 31st October, SAA will be cheaper. Untill Comair (BA SA) wants more pax and offers better rates.

[vflies]

Indeed LX-LGX, but as I understand it the current agreement between VAA and Nationwide will be stopped and replaced by the new one with SAA from Oct 31.
Nationwide is also leaving Virgin's FF scheme from Nov 1.
So I guess it's more a case of a new alliance replacing the current one altogether.
Tables keep turning...

VFlies