Yesterday I posted about media reports that suggest South African Airways might be on the brink of liquidation. They’ve been in a horrible financial situation for a long time, and have gone through seven CEOs in the past four years. The airline has an inefficient fleet and route network, and has been mismanaged far beyond those challenges.
Unless the airline wants to shrink into profitability, it’s going to take a lot to turn the airline around, including quite a bit of capital.
Well, it looks like South African Airways is trying to raise that capital… by taking out newspaper ads.
The airline took out an ad in a South African newspaper today casually asking for a 16 billion Rand loan, which equates to about 1.1 billion USD:
Well, I guess that’s one way to raise money. If anyone has over a billion dollars they have no use for that they’re looking to set on fire, this offer is for you. On second thought, email me first — I’ll put the money to better use! 😉
(Tip of the hat to @Avuxeni_)
http://www.biznews.com/undictated/2016/08/31/nuclear-bomb-triggered-futuregrowth-ends-lending-to-soes-in-wake-of-finmin-attacks/
Thuli is 100% correct - it is all part of theft and corruption by government to keep on looting state coffers at will.
For those commenting that this is just standard practice leading up to a loan... nope, sorry. SAA is in huge trouble and this advertisement is raising huge questions in South Africa itself. I live in South Africa and this situation is being watched closely by all. The government Finance Ministry is refusing to give them a loan because of such bad management and so it seems they are attempting to go elsewhere. A Parliamentary Committee...
For those commenting that this is just standard practice leading up to a loan... nope, sorry. SAA is in huge trouble and this advertisement is raising huge questions in South Africa itself. I live in South Africa and this situation is being watched closely by all. The government Finance Ministry is refusing to give them a loan because of such bad management and so it seems they are attempting to go elsewhere. A Parliamentary Committee is meeting right now to figure this one out... the future does not look good for SAA. (http://www.fin24.com/Companies/Mining/saa-warned-to-file-financials-overhaul-board-20160831)
@JeremyWoodhouse - Trump will be able to buy SA as well as SAA as the value of the rand slides towards zero.
More kak from JZ and his crooked bro's. Maintenance is at the bare minimum allowed. Thus SAA means SEND ANOTHER AIRCRAFT !!!!!
True that the Govt and SAA are one and the same. Mismanagement, blatant theft of taxpayers money not to mention lack of servicing on the fleet. Would not fly SAA and that's coming from a South African!
The time has come...
Who in the right mind would offer them the loan knowing full well the fundamentals of the organisation cannot be changed given the politically connected management team, who cannot be replaced.
I'm surprised the government has not leaned on local banks to provide the loan, who in turn is supported by the central bank...until the next financial crisis comes along.Then it all comes crashing down like a house of cards....
Eugene, I believe that was Richard Branson who said that when he started Virgin.
Perhaps Trump should buy SAA. He keeps saying he has lots of money
As C said... These notices happen all the time. Open a wsj
If the airline is liquidated, will passengers who have paid bookings get re-imbursed somehow, or can they wirte off their money as well?
various government organizations take out RFP's all the time here (check the wall street journal or the NY times) It is legally required.
this is just a legally required public notice of an rfp...
As SAA is owned by the Government of South Africa, this is most likely just a required public notice that they have to post in the main newspapers of South Africa before undertaking a loan of this size. This is required here as well, so it's nothing unique. Sorry to be a party pooper but this isn't a story, nor is it taking out ads asking for a loan, it's just public notification of an RFP.
Due to be flying with SAA next week... fingers crossed!!!
They've taken's Trump small loan of 1 million dollars to a whole new level!
As I may quote. If you want to become a millionaire, start off with a billion dollars and invest in an airline!