The end for South African Airways?
SAA has been teetering on the brink of bankruptcy for a long time. Despite there not being much competition on many international routes, domestic and short-haul low-cost carriers added an extra nail in their coffin over the last few years. It was announced that the airline plans to lay off their entire workforce of 4,700 staff by the end of April.
SAA has been going for 86 years, but still did not persuade the government that they were worth bailing out. Sadly the airline has failed to make enough positive changes to ensure its ongoing viability as a business. Staff are expected to be given severance deals by the end of April.
SAA last made a profit in 2011 and since then has been relying on bailouts and debts guaranteed by the state. The current COVID-19 situation meant that the South African government are no longer willing to give funds to the struggling airline.
Virgin Atlantic government deal – the airline must try harder to get funding by other means
Virgin Atlantic had previously approached the UK government for a $500 million bailout due to the COVID-19 situation. Recently the government had called in US bank Morgan Stanley to advise them on making a decision on the rescue package proposed. The FT has now revealed that the government have been unimpressed with the requested bailout proposal and asked Virgin to submit an improved bid. FT sources said that the proposal did not take into account the reduction in demand as a result of the current situation. Prior to the COVID-19 situation, Virgin had already been on course for more losses this year anyway, with a return to profitability not forecasted until 2021. Last year it lost $26 million.
Virgin were due to start flying to São Paolo on 19 March 2020, which was postponed until October as a result of the current crisis. They have now made the decision to cancel the route entirely. A statement on the website said,
In response to the rapid acceleration and severe impact of Covid-19, we are continually reviewing our flying programme and as a result, we have made the incredibly difficult decision to withdraw our London Heathrow to Sao Paulo service which was due to launch on 6th October 2020. For anyone that has booked a flight to Sao Paulo we will be in contact about rebooking and cancellation options.
If you are worried about your Virgin Flying Club miles – have a read of this article.
Virgin special offer – free miles bonus up to 10,000 per return flight
Virgin have also launched a ‘Spring Bonus’ which means that Flying Club members who purchase tickets between 13 March and 30 April 2020 are able to earn 2,500 miles per sector of Virgin Atlantic marketed and operated flights. For bookings made via PayPal, members can double up on the ‘Spring Bonus’ and earn 5,000 miles per sector for tickets purchased between April 14th and April 30th.
You can take advantage of the offer here.
4 comments
Must you really misspell “São Paolo”? The name of the biggest city in the Southern Hemisphere! It’s a ubiquitous but nonetheless irritating mistake (Guardian, The Economist etc) so you’re in good company but we expect better from TLFL with your Brazilian connection. And after all, you only had to copy the correct spelling from the Virgin press release.
That was pasted from the Virgin statement complete with THEIR misspelling! A quote is a quote complete with any misspelling. That is why it is displayed as quote. Feel free to complain to Virgin.
I presume Mr. Clift went out of bed with the wrong leg first. Find it ridiculous that he bothers about this small detail. Maybe bored in the lockdown?
@Simonclift: Grammar school boy here too! However, having worked for airlines and travel companies for thirty odd years, this is the worst ever time for this incredible industry and I have to say that the speed an accuracy of reporting from TLFL is commendable, so much so that am happy to forgive the odd typo and occasionally have one or two of my own- did you spot it?! Come on. Give us a break and be nice.
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