TWO MAJOR AIRLINES ON DEATH’S DOOR

TWO MAJOR AIRLINES ON DEATH’S DOOR


04.Dec.2019

AFTA announced on Tuesday that South Africa’s national carrier had made the list of suppliers excluded from its Chargeback Scheme, and two major South African travel insurance companies have stopped covering tickets issued by the airline against insolvency.

Analysts have speculated that while the move won’t push the airline into liquidation it will affect ticket sales for the airline that struggled to pay salaries on time this month, Reuters reported.

South African Airways has failed to make a profit since 2011 and suffered a huge financial fall out after two of its largest unions began an eight-day strike on 15 November, forcing the airline to cancel hundreds of flights.

The country’s finance minister, Tito Mboweni, has refused to sign off on guarantees so the airline can get the 2 billion rand ($199.5 million) it needs to stay afloat and according to Reuters, a board member of the airline admitted last week there is a possibility the airline could shut down.
-
Meanwhile, Hong Kong Airways has been given until Saturday to get its financial affairs in order or have its flying licence suspended.

Hong Kong’s Air Transport Licensing Authority (ATLA) released a statement on Monday saying after meeting with Hong Kong Airways senior management team, the organisation was of the opinion the airline’s financial position “has deteriorated rapidly” to the extent that there is doubt it will be able to pay salaries and provide a satisfactory service.

“After careful consideration of the financial position of HKA at present, ATLA must take immediate and resolute action to prevent further deterioration of HKA’s situation in order to protect public interests,” a spokesperson for ALTA said.

“In accordance with the two new licence conditions attached by ATLA, HKA must, by a deadline set, ensure cash injection at a level determined by ATLA (or provide an alternative to the satisfaction of ATLA), and raise and maintain its cash and cash equivalent level as stipulated by ATLA.”

ALTA said it would revoke or suspend the airline’s operating licence if it did not get its affairs in order by 7 December.

Subscribe to our Worldwide Airline News

Join our online community and receive timely news from around the world. Everything airline - everything food. We'll also let you know of any updates to our website and apps. Join Aeroplate.