Editing South African Airways (section)

=== Financial difficulties and bankruptcy: 2012–2020 ===
[[File:South African Airways Airbus A340 ZS-SXA Perth 2019 (01).jpg|thumb|An [[Airbus A340#A340-300|Airbus A340-300]] approaching [[Perth Airport]] (2019)]]
[[File:South_African_Airways_Airbus_A350-941_ZS-SDF_arriving_at_JFK_Airport.jpg|thumb|A since phased-out [[Airbus A350-900]] in the current colour scheme arriving in [[New York City|New York]] (2020)]]
On 24 February 2012 SAA's new [[Airbus A320-200]], registration ZS-SZZ, made its first revenue flight between Johannesburg and Durban. There were twelve A320s in the fleet as of December 2016. On 16 August 2012, SAA ended its Cape Town-London route after 20 years, due to declining passenger numbers and increasing airport taxes.

SAA began flights to Beijing, China on 31 January 2012.<ref>{{cite web |title=Introducing Direct Services to Beijing, China - South African Airways |url=http://www.flysaa.com/za/en/newroutes/china.html |access-date=24 April 2015 |archive-date=2 April 2015 |archive-url=https://web.archive.org/web/20150402112345/http://www.flysaa.com/za/en/newroutes/china.html |url-status=live }}</ref> Buenos Aires flights ended in 2013 and, in January 2015, SAA announced plans to end its non-stop services to [[Beijing Capital Airport|Beijing]] and [[Mumbai Airport|Mumbai]]. Services to China were replaced by Star Alliance partner [[Air China]] with a flight to Beijing.<ref>{{Cite news |date=6 February 2015 |title=South African Airways outlook brightens as recovery plan and partnership strategy roll out |publisher=centreforaviation.com |url=http://centreforaviation.com/analysis/south-african-airways-outlook-brightens-as-recovery-plan-and-partnership-strategy-roll-out-208472 |access-date=7 February 2015 |archive-date=7 February 2015 |archive-url=https://web.archive.org/web/20150207162907/http://centreforaviation.com/analysis/south-african-airways-outlook-brightens-as-recovery-plan-and-partnership-strategy-roll-out-208472 |url-status=live }}</ref> In June 2015, the acting CEO stated that [[London]], [[New York City]], [[Hong Kong]], [[Munich]], [[Frankfurt]] and [[Perth]] were the only profitable long-haul routes; all others were loss-making.<ref>{{cite web |title=South African Airways Upbeat On Turnaround |url=http://aviationweek.com/iata-agm-2015/south-african-airways-upbeat-turnaround |website=aviationweek.com |access-date=10 June 2015 |archive-date=10 June 2015 |archive-url=https://web.archive.org/web/20150610110235/http://aviationweek.com/iata-agm-2015/south-african-airways-upbeat-turnaround |url-status=live }}</ref>

In September 2017, SAA began reducing its fleet and expected to cut 23% of its flights.<ref>{{Cite news |agency=Reuters |title=SAA to shrink services as part of revamp |language=en |url=http://ewn.co.za/2017/09/13/saa-to-shrink-services-as-part-of-revamp |access-date=2017-09-22 |archive-date=23 September 2017 |archive-url=https://web.archive.org/web/20170923050614/http://ewn.co.za/2017/09/13/saa-to-shrink-services-as-part-of-revamp |url-status=live }}</ref> Standard Chartered Bank was the first bank in June 2017 to call in its SAA loan. The South African government provided R2.2 billion to settle the debt.<ref>{{Cite news |title=Why Citibank pulled the plug on bankrupt SAA |language=en-US |url=https://www.timeslive.co.za/sunday-times/business/2017-08-25-why-citibank-pulled-the-plug-on-bankrupt-saa/ |access-date=2017-09-22 |archive-date=23 September 2017 |archive-url=https://web.archive.org/web/20170923003241/https://www.timeslive.co.za/sunday-times/business/2017-08-25-why-citibank-pulled-the-plug-on-bankrupt-saa/ |url-status=live }}</ref> Citibank was the second bank to refuse extending the loan facility. Together with some others, another R7.7 billion became payable at the end of September 2017. The South African treasury asked the Public Investment Corporation, which controls government pension funds, for R100 billion to help bail out state-owned enterprises, including SAA.<ref>{{Cite news |title=Treasury said to ask PIC for R100bn for state-owned enterprises |work=Fin24 |url=http://www.fin24.com/Economy/treasury-said-to-ask-pic-for-r100bn-for-state-owned-enterprises-20170922 |access-date=2017-09-22 |archive-date=22 September 2017 |archive-url=https://web.archive.org/web/20170922212832/http://www.fin24.com/Economy/treasury-said-to-ask-pic-for-r100bn-for-state-owned-enterprises-20170922 |url-status=live }}</ref>

On 5 December 2019, the government of South Africa announced that SAA would enter into bankruptcy protection, as the airline had not turned a profit since 2011 and had run out of money.<ref>{{cite web |date=2019-12-04 |title=South African Airways to Enter Into Bankruptcy Protection |url=https://www.bloomberg.com/news/articles/2019-12-04/south-african-airways-to-be-placed-into-business-rescue |access-date=2019-12-05 |website=Bloomberg.com |archive-date=25 April 2020 |archive-url=https://web.archive.org/web/20200425091656/https://www.bloomberg.com/news/articles/2019-12-04/south-african-airways-to-be-placed-into-business-rescue |url-status=live }}</ref> In January 2020, South African Airways announced that it would suspend several routes, e.g. to [[Munich]] in order to reduce its financial struggle.<ref>{{Cite news|title=South African Airways cancels some flights to Munich to save cash|newspaper=Reuters|date=21 January 2020|url=https://www.reuters.com/article/safrica-saa-cancellations/south-african-airways-cancels-some-flights-to-munich-to-save-cash-idUSJ8N28101T/|access-date=21 January 2020|archive-date=21 January 2020|archive-url=https://web.archive.org/web/20200121151920/https://www.reuters.com/article/safrica-saa-cancellations/south-african-airways-cancels-some-flights-to-munich-to-save-cash-idUSJ8N28101T|url-status=live}}</ref> In February 2020, the airline introduced its first of four newly leased [[Airbus A350-900]]s in an attempt to modernize its loss-making long-haul fleet.<ref>[https://www.businessinsider.de/international/south-african-airways-debuted-its-new-airbus-a350-despite-bankruptcy-2020-2/?r=US&IR=T businessinsider.de] 9 February 2020</ref>

On 5 December 2019, SAA was placed under business rescue. Les Matuson and Siviwe Dongwana were appointed as the Business Rescue Practitioners of SAA in December 2019.<ref>{{cite web |title=Business Rescue of South African Airways (SOC) Limited |url=https://matusonassociates.co.za/saa/ |access-date=2020-05-21 |website=matusonassociates.co.za |language=en-ZA |archive-date=1 June 2020 |archive-url=https://web.archive.org/web/20200601074432/https://matusonassociates.co.za/saa/ |url-status=live }}</ref> A business recovery plan was expected by the end of February 2020, extended, then postponed. A final plan is yet to be presented.<ref>{{cite news |title=Gordhan Stakes His Reputation and South Africa's on Airline |url=https://www.bloomberg.com/news/articles/2020-05-17/gordhan-stakes-his-reputation-and-south-africa-s-on-airline |access-date=2020-05-21 |website=bloomberg.com |date=17 May 2020 |language=en-ZA |archive-date=19 May 2020 |archive-url=https://web.archive.org/web/20200519050141/https://www.bloomberg.com/news/articles/2020-05-17/gordhan-stakes-his-reputation-and-south-africa-s-on-airline |url-status=live }}</ref><ref>{{cite news |title=How was R5.5bn spent by SAA BRPs? Gordhan wants answers |url=https://www.moneyweb.co.za/news/companies-and-deals/how-was-r5-5bn-spent-by-saa-brps-gordhan-wants-answers/ |access-date=2020-05-21 |newspaper=Moneyweb |date=7 May 2020 |language=en-ZA |archive-date=20 May 2020 |archive-url=https://web.archive.org/web/20200520050534/https://www.moneyweb.co.za/news/companies-and-deals/how-was-r5-5bn-spent-by-saa-brps-gordhan-wants-answers/ |url-status=live }}</ref>

In February 2020, ex-Secretary General of the ANC, Ace Magashule, stated that should the Business Rescue Practitioners take decisions not to the ANC's liking, it would intervene. Economist Jacques Jonker, then at the Free Market Foundation, criticised Magashule, pointing out that the Business Rescue Practitioners are officers of the court in terms of the Companies Act of 2008, and that it would be illegal for the ANC to intervene in the business rescue process.<ref>{{cite web|last=Cele|first=Juniour Khumalo and S’thembile|title=ANC allies put their foot down: 'Business rescue practitioners do not own SAA; we do'|url=https://www.news24.com/citypress/News/anc-allies-put-their-foot-down-business-rescue-practitioners-do-not-own-saa-we-do-20200217|access-date=2021-06-25|website=Citypress|language=en-US|archive-date=25 June 2021|archive-url=https://web.archive.org/web/20210625174234/https://www.news24.com/citypress/News/anc-allies-put-their-foot-down-business-rescue-practitioners-do-not-own-saa-we-do-20200217|url-status=live}}</ref><ref>{{cite web|date=2020-02-20|title=Government can't interfere in SAA business rescue process, unless... – Jacques Jonker|url=https://www.biznews.com/undictated/2020/02/20/government-cant-interfere-saa-business-rescue|access-date=2021-06-25|website=BizNews.com|language=en-GB|archive-date=25 June 2021|archive-url=https://web.archive.org/web/20210625174241/https://www.biznews.com/undictated/2020/02/20/government-cant-interfere-saa-business-rescue|url-status=live}}</ref> When Minister of Public Enterprises Pravin Gordhan later tried to justify the notion that the business rescue practitioners are accountable to him and not to the courts, Jonker pointed out that such a state of affairs would be unconstitutional.<ref>{{cite web|last=Jonker|first=Jacques|title=Accountability is more important than government's desire for control|url=https://www.news24.com/citypress/Voices/accountability-is-more-important-than-governments-desire-for-control-20200312|access-date=2021-06-25|website=Citypress|language=en-US|archive-date=25 June 2021|archive-url=https://web.archive.org/web/20210625174231/https://www.news24.com/citypress/Voices/accountability-is-more-important-than-governments-desire-for-control-20200312|url-status=live}}</ref>

In April 2020, following a request for further emergency financing due to the [[COVID-19 pandemic]], the South African government announced that it would stop funding the airline with immediate effect.<ref>{{cite web |date=2020-04-14 |title=Is this the end of SAA? Government shoots down funding request |url=https://www.fin24.com/Companies/Industrial/is-this-the-end-of-saa-government-shoots-down-funding-request-20200414 |access-date=2020-04-19 |website=Fin24 |archive-date=20 April 2020 |archive-url=https://web.archive.org/web/20200420205905/https://www.fin24.com/Companies/Industrial/is-this-the-end-of-saa-government-shoots-down-funding-request-20200414 |url-status=live }}</ref> The airline then announced plans to lay off all remaining staff by the end of the month, sparking fears that SAA was on the brink of [[liquidation]].

As of 1 May 2020, all SAA staff members were on unpaid leave of absence, including those who are reporting for duty, with no pay for the 4,708 remaining workforce.<ref name="iol.co.za">{{cite web |title=Shape up or ship out, parliament tells SAA's business rescuers |url=https://www.iol.co.za/business-report/economy/shape-up-or-ship-out-parliament-tells-saas-business-rescuers-48070238 |access-date=2020-05-21 |website=iol.co.za |language=en-ZA |archive-date=19 May 2020 |archive-url=https://web.archive.org/web/20200519050139/https://www.iol.co.za/business-report/economy/shape-up-or-ship-out-parliament-tells-saas-business-rescuers-48070238 |url-status=live }}</ref><ref name="ReferenceB">{{cite web |title=SAA's business rescue practitioners 'raked in over R30m without producing a plan' |url=https://www.iol.co.za/news/politics/saas-business-rescue-practitioners-raked-in-over-r30m-without-producing-a-plan-48047867 |access-date=2020-05-21 |website=iol.co.za |language=en-ZA |archive-date=23 May 2020 |archive-url=https://web.archive.org/web/20200523020423/https://www.iol.co.za/news/politics/saas-business-rescue-practitioners-raked-in-over-r30m-without-producing-a-plan-48047867 |url-status=live }}</ref> Unaudited financial statements presented in a draft report show SAA made losses of almost R16 billion in the previous three years.<ref name="iol.co.za" /><ref name="ReferenceB" /> SAA received R50 billion of government assistance between 2004 and 2020.<ref>{{cite web |title=Full extent of SAA burden on taxpayers revealed - at last |url=http://www.tourismupdate.co.za/article/199459/Full-extent-of-SAA-burden-on-taxpayers-revealed-at-last |access-date=2020-05-21 |website=tourismupdate.co.za |language=en-ZA |archive-date=21 May 2020 |archive-url=https://web.archive.org/web/20200521101327/http://www.tourismupdate.co.za/article/199459/Full-extent-of-SAA-burden-on-taxpayers-revealed-at-last |url-status=live }}</ref>

On 2 May 2020, the government of South Africa announced that South African Airways would be ceasing operations after 86 years of service, and that a new flagship carrier would be created for South Africa out of the ashes of the former airline.<ref>{{cite web |title=South African Airways nears collapse, plans to fire all staff |url=https://www.executivetraveller.com/news/south-african-airways-collapse |access-date=2020-04-19 |website=Executive Traveller |language=en |archive-date=20 April 2020 |archive-url=https://web.archive.org/web/20200420082859/https://www.executivetraveller.com/news/south-african-airways-collapse |url-status=live }}</ref> The liquidation process was set to begin on 8 May; however, a legal battle between the liquidators and the workforce delayed the proceedings indefinitely.<ref>{{cite web |last=Kaminski-Morrow2020-05-07T14:38:00+01:00 |first=David |title=SAA on brink as government scrambles to defer 'drop dead' date |url=https://www.flightglobal.com/airlines/saa-on-brink-as-government-scrambles-to-defer-drop-dead-date/138271.article |access-date=2020-05-07 |website=Flight Global |language=en |archive-date=11 May 2020 |archive-url=https://web.archive.org/web/20200511150233/https://www.flightglobal.com/airlines/saa-on-brink-as-government-scrambles-to-defer-drop-dead-date/138271.article |url-status=live }}</ref><ref>{{cite web |last=Kaminski-Morrow2020-05-08T17:57:00+01:00 |first=David |title=SAA defies shutdown as unions claim labour court victory |url=https://www.flightglobal.com/airlines/saa-defies-shutdown-as-unions-claim-labour-court-victory/138295.article |access-date=2020-05-09 |website=Flight Global |language=en |archive-date=9 May 2020 |archive-url=https://web.archive.org/web/20200509223446/https://www.flightglobal.com/airlines/saa-defies-shutdown-as-unions-claim-labour-court-victory/138295.article |url-status=live }}</ref> In July, the creditors voted to accept the restructuring plan, allowing the airline to avoid liquidation. A full domestic network was to be reinstated by December 2020.<ref>{{cite news |title=SAA creditors approve turnaround plan |url=https://www.ch-aviation.com/portal/news/93069-saa-creditors-approve-turnaround-plan |access-date=2020-07-22 |newspaper=Ch-Aviation |language=en |archive-date=22 July 2020 |archive-url=https://web.archive.org/web/20200722165546/https://www.ch-aviation.com/portal/news/93069-saa-creditors-approve-turnaround-plan |url-status=live }}</ref>

On 21 August 2020, The Department of Public Enterprises (DPE) appointed [[First Rand|Rand Merchant Bank]] to help with negotiations with private entities interested in buying into the country's insolvent national carrier, which needed at least R10 billion to resume operations.<ref>{{cite web |last=Bloomberg |title=SAA in talks with potential buyers |url=https://businesstech.co.za/news/government/427154/saa-in-talks-with-potential-buyers/ |access-date=2020-08-21 |language=en-US |archive-date=21 August 2020 |archive-url=https://web.archive.org/web/20200821073120/https://businesstech.co.za/news/government/427154/saa-in-talks-with-potential-buyers/ |url-status=live }}</ref> On 30 September the airline announced that it was suspending all operations until critical funding could be agreed.<ref>{{cite web |last=Kaminski-Morrow |first=David |date=30 September 2020 |title=SAA suspends operations as rescuers seek to preserve finances |url=https://www.flightglobal.com/airlines/saa-suspends-operations-as-rescuers-seek-to-preserve-finances/140388.article |url-access=registration |access-date=30 September 2020 |website=[[FlightGlobal]] |archive-date=2 October 2020 |archive-url=https://web.archive.org/web/20201002123240/https://www.flightglobal.com/airlines/saa-suspends-operations-as-rescuers-seek-to-preserve-finances/140388.article |url-status=live }}</ref>

In September 2020, SAA suspended all flight operations as the Business Rescue Practitioners placed the airline under "care and maintenance" until further funding could be sourced.<ref>{{cite web|agency=Reuters|title=SAA to go under care and maintenance until funding found|url=https://www.engineeringnews.co.za/article/saa-to-go-under-care-and-maintenance-until-funding-found-2020-09-30|access-date=2021-02-12|website=www.engineeringnews.co.za|language=en|archive-date=29 October 2020|archive-url=https://web.archive.org/web/20201029234408/https://www.engineeringnews.co.za/article/saa-to-go-under-care-and-maintenance-until-funding-found-2020-09-30|url-status=live}}</ref>

In October 2020, the South African government said it was looking for partners in its efforts to bail out the airline. On 28 October 2020, the South African government bailed SAA out with R10.5 billion in order to implement the turnaround strategy.<ref>{{Cite news |date=2020-10-28 |title=South Africa Defends State Airline Bailout As It Seeks Partners |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2020-10-28/south-africa-defends-state-airline-bailout-as-it-seeks-partners |access-date=2020-10-28 |archive-date=31 October 2020 |archive-url=https://web.archive.org/web/20201031173656/https://www.bloomberg.com/news/articles/2020-10-28/south-africa-defends-state-airline-bailout-as-it-seeks-partners |url-status=live }}</ref> During 2020, the airline returned 4 Airbus A319s, all of its 10 A320s, all of its 6 A330-200s, 4 A330-300s, 3 A340-300s, 3 A340-600s, and all 4 new A350-900s to their respective lessors.{{Cn|date=September 2024}} Both Boeing 737 Freighters also left the fleet in early 2020, ending a long history of dedicated freighter operations at the airline.{{Cn|date=September 2024}}

As of February 2021, the South African government was in talks with three potential investors to revive the airline and resume operations, with a massively-reduced workforce.<ref>[https://businesstech.co.za/news/trending/468264/new-saa-to-get-partner-as-it-prepares-to-exit-business-rescue/ businesstech.co.za - ‘New SAA’ to get partner as it prepares to exit business rescue] {{Webarchive|url=https://web.archive.org/web/20210216062039/https://businesstech.co.za/news/trending/468264/new-saa-to-get-partner-as-it-prepares-to-exit-business-rescue/ |date=16 February 2021 }} 15 February 2021</ref> The South African treasury reported that the airline had incurred a total loss of R32 billion (US$2.1 billion) between 2008 and 2020.<ref name=":0">{{Cite web |date=2021-05-06 |title=No more bailouts for SAA |url=https://mg.co.za/business/2021-05-06-no-more-bailouts-for-saa/ |access-date=2022-02-26 |website=The Mail & Guardian |language=en-ZA |archive-date=26 February 2022 |archive-url=https://web.archive.org/web/20220226191827/https://mg.co.za/business/2021-05-06-no-more-bailouts-for-saa/ |url-status=live }}</ref> The [[Mail & Guardian|Mail and Guardian]] estimated that the airline had received a total of R60 billion (US$4 billion) in government guarantees.<ref name=":0" />