Tag Archives: South African Airways

Business, Malawi, Regional

South African Airways suspends Malawi services: Effect of reckless 44% kwacha devaluation

Maravi Post Reporter

PRETORIA-(MaraviPost)-The South African Airways (SAA) has announced suspension of services to Malawi (Lilongwe and Blantyre), with effect from Thursday, November 30, 2023.

The development comes barely a week after President Lazarus Chakwera’s Tonse Alliance government devalued Malawi Kwacha by 44%.

The Kwacha devaluation has worsened already economic volatile as goods and services have gone up beyond locals imagination.

A statement issued on Tuesday, November 21, 2023 says in an industry alert last week, SAA mentioned that it was monitoring the situation of substantial
devaluation of the Malawi Kwacha, acute foreign currency shortages and the escalation of blocked funds, closely before making the ‘difficult’ decision to cancel its route to Malawi.

SAA’s Chief Executive Officer John Lamola says the decision to cancel the route is a carefully considered risk management intervention in response to Malawi’s current economic
challenges.

“South African Airways (SAA) will suspend service to Malawi (Lilongwe and Blantyre), due to the recent economic challenges in Malawi.

“In an industry alert last week, SAA mentioned that it was monitoring the situation of substantial devaluation of the Malawian Kwacha, acute foreign currency shortages, and the escalation of blocked funds, closely before making the difficult decision to cancel its route to Malawi,” reads part of SAA statement.

SAA adds, “The suspension of services to Malawi is effective from Thursday, 30th November 2023.This move should not be interpreted as a step back from the airline’s commitment to serving the people of Malawi and promoting trade links between South Africa and Malawi.

“As the new leadership of SAA-and as a small but growing airline – we cannot commit to routes that are not financially sustainable. SAA values its relationship with the Malawian market and thanks its customers for their understanding and continued support during these challenging times”.

Lamola concludes, “We will continue to closely monitor the situation. We remain open to resuming the route to Malawi as soon as the situation warrants the substance of financially efficient operations from this route

“SAA apologizes for any inconvenience this may cause and thanks its customers for their understanding and continued support during these challenging times”

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Lifestyle, Regional

South African Airways immediately suspends operations over funding shortfall

Lloyd M’bwana
South African Airways

PRETORIA-(MaraviPost)-Embattled airline South Africa Airways (SAA) has suspended all operations “with immediate effect”, its business rescue practitioners (BRPs) Les Matuson and Siviwe Dongwana announced on Tuesday, September 29, 2020.

Matuson and Dongwana said there had been “certain progress” in securing funding for the business rescue plan.

On September 18, the public enterprises department said the government would reprioritise funds to finalise the restructuring of SAA and the implementation of the airline’s business rescue plan.

“An announcement to this effect will be  in the Adjustments Appropriation Bill, which will be introduced in parliament soon. The national carrier will not be liquidated,” the department said in a statement.

The announcement by the department follows a creditors’ meeting called by the airline’s business rescue practitioners on September 18, after government’s failure to provide funding for the restructuring of the airline.

After the meeting, Dongwana said they had received a letter from the government indicating a clear commitment to provide the R10.5bn funding.

The department said because the restructuring process should be brought closer to finalisation in the next few weeks.

However, 11 days on and that funding hasn’t been finalised – which is what led to the BRPs’ decision on Tuesday.

“There has been certain progress throughout the previous week in relation to the securing of funding for the implementation of the business rescue plan, subject to certain terms and conditions,” said Matuson and Dongwana.

“The BRPs and government have engaged with certain funders that have indicated a willingness to provide a portion of the funding required for the implementation of the business rescue plan. The BRPs are engaging with government in relation to the securing of the remaining funding that is required to fully implement the business rescue plan and what the implications would be for the company if it receives a portion of the required funding.

“In the interim, the BRPs have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed.”

Source: TimesLIVE

Business, Malawi

South African Airways goes bankrupt affecting flights scheduled for Friday, Saturday

Maravi Post Reporter

South African Airways goes bankrupt affecting flights scheduled for Friday, Saturday

By Angella Semu

PRETORIA-(MaraviPost)-SAA fails to meet workers demands of 8% increase as a result of failure to make profits since 2011 which has resulted into workers going on strike and eventually canceled flights scheduled for Friday and Saturday.

A Union representing about 3,000 of its 5,000-member workforce said the strike would begin at 4 a.m.on Friday and go on indefinitely after a failed negotiation with the carrier. SAA said would offer 5.9% raise from April which didn’t resonate well with the workers demand of 8% increase.

Tlali Tlali, SAA spokesperson said the immediate increase in wages isn’t currently possible until the company secures enough funds and in mean time, only flights directly operated by SAA will be affected and not subsidiaries flights.

As quoted by Reuters, Tlali said: “We have a meeting scheduled for today at 2 o’clock and we are hopeful we will be able to resolve the issue … It will include all the unions … and if the meeting yields positive results we will then activate some contingency plans that will allow us to reinstate flights”.

Zazi Nsibanyoni-Mugambi, president of the South African Cabin Crew Association (SACCA) who is leading the strike with the National Union of Metalworkers of South Africa (NUMSA), said the offer is unacceptable.

“They really need to get serious, 5.9% simply won’t cut it. It’s just over 1% more that we are asking for and we think its attainable, so last night we asked SAA (negotiators) to go and get a fresh mandate from management,” he said