ArthurDent wrote: ↑
Mon Jan 14, 2019 9:21 pm
HJK 414 wrote: ↑
Mon Jan 14, 2019 12:16 pm
Or are we looking at a cash strapped airline that is making difficult choices due to economic constraints ??
No, we’re probably just looking at a keyboard expert who likes second guessing everything done by South African SOE’s and authorities.
I agree - there is always a Avcommer somewhere that feels he has to comment on affairs he does not understand / or fails to see the relevance of - and feels the need to make snide remarks.
To explain the "offending remark" - which was made in a discussion about the A340 - apparently being "cannibalized" to keep the other fleet flying ....
My line of thought was that SAA have a lot of assets under collateral / guarantee for the financing and loans on their balance sheet / and it is quite possible that they are not allowed to sell the assets (which would help raising cash for operational purposes) - and are hence making these "difficult choices" - as they are between a rock and a hard place ......
If you take the time to go back in the posts you will also notice that I questioned on the Maintenance reserve having been "eaten up"
The MR is a reserve of cash per hour flown - accounted for and parked to pay for upcoming maintenance bills - as is also the case with depreciation of assets / monthly or annual allocation of funds to replace the assets when appropriate.
I cases such as SAA - where Operational cash is non existent - it is often used to "pay for the daily bills".
Insolvent is the word - google it.
One could always ask when things are beyond your grasp .......