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.
Hi ... I have a question about the bankruptcy of the African company. What does it mean when on the skyscanner flight cairo johannesburg appears the logo of the company Africa Airways but under the logo I have the comment Operated by Egyptair.? I mention that this flight is at the same time of takeoff and landing with the schedule of Egypt air. Given the announcement of the bankruptcy of the Africans, does that mean a flight with Egypt air? If both airlines are under the Star airllaince logo? Would it be wise to buy the ticket on the African website, which is a cheaper idea than the Egyptian one? Thanks
Your situation is not related to the bankruptcy of the African company. As far as we know, South African Airways continues to fly.
Your situation is related to those flights operated in codeshare and which appear frequently in the searches performed on search engines like momondo, skyscanner and even in the searches of the airlines websites. Yes, that flight found by you and given examples is operated by Egyptair, but is operated in partnership with South African Airways. This means that South African Airways can sell seats on that flight operated by Egyptair.
To make myself better understood. TAROM is in the Skyteam alliance and has codeshares and partnerships with all companies in the alliance. For example, Air France can sell tickets on flights Bucharest - Cluj operated by TAROM. As well as TAROM sells tickets on some flights operated by Air France departing from Paris.