South African Airways is in bankruptcy but will continue to fly
South Alliance Airways, a member of Star Alliance, went into technical bankruptcy after debt reached 1.48 billion, well above the value of assets.
South African Airways, the national carrier of South Africa, has gone into technical bankruptcy. This is after the debt reached 1.48 billion dollars, over the value of the assets held.
The South African air carrier plans to sell more of its assets to cover its debts, after banks refused to provide loans to the company. In terms of assets, South African Airways has an all-Airbus fleet: 11 x Airbus A330, 16 x Airbus A340, 17 x A319 / A320.
South African Airways is in bankruptcy
South African Airways is a state-owned airline and has received numerous cash loans. All the while, the government has been desperately searching for a new investor for South African Airways.
All those interested in taking over the company in South Africa, including Emirates, rejected the proposals. And in this case, taking into account the company's debt, it will be impossible to find an investor.
How did South African Airways get into this situation? Being a state-owned company, its activity was subject to politics. The losses are attributed to corruption and poor management. Although commercial aviation is growing, the South African carrier has hardly adapted to market requirements. South African Airways' valuation report shows "finger-pointing" to the company's former board of directors and former President Dudu Myeni.
You don't have to be scared at the moment. South African Airways would receive a new temporary aid from the South African government, even if not all politicians agree with this refinancing measure.