Although our national carrier has been flying for 75 years, it seems that whatever SAA does, it just cannot get itself off the ropes and into the ring. Here are some of the left jabs, straight rights, left hooks, and combinations that have left the airline reeling… �
1. Is SAA solvent?  
SAA’s debts currently exceed its equity by 10% a parliamentary portfolio committee recently heard. Kaushik Patel, SAA’s cfo, says despite having had R8,5bn’s worth of shots in the arm from the SA government in the past five years, the carrier remains undercapitalized and is now in a debt trap. A promise of only R1,6bn has been secured from treasury, but SAA has said it needs R5,2bn in capital just to deal with its frequent flyer programme liability on its balance sheet and to avoid being sued by Airbus. �
2. Will Airbus sue? �
The reference to SAA actually needing R5,2bn from government to avoid being sued by Airbus relates to it attempting to cancel part of a 2002 order comprising a mix of 41 Airbus aircraft, valued at around R23bn in 2002. After the 2004 fuel hedging disaster SAA wanted to cancel 15 A320s (a total of R9,4m at list prices) out of the order. Airbus took the view that the original contract was a single package involving all 41 aircraft (nine A340-600s, six A340-300Es, 11 A319s and the 15 A320s, all but the A320s have been delivered) and thus the order was still in force according to Airbus and progress payments have to be maintained. SAA is believed still to be in negotiations with the manufacturer. �
3. Will Comair and Nationwide sue? �
The Competition Commission is yet to decide on a second case brought by Comair and the liquidators of Nationwide over what the two private airlines have called SAA’s unfair use of incentive schemes to persuade travel agents to offsell them. If the decision goes against SAA, it will open the way for a civil case to be brought by the Nationwide liquidators and Comair. How much they will claim is unknown. �
4.  Some gravy with that, sir?
Labour unions provoke an investigation into alleged irregularities in the awarding of a catering services tender for SAA to a company in which a business partner of SAA ceo Khaya Ngqula’s wife is involved.  Midway, the airline and its ceo suddenly decided to part company “by mutual agreement” according to chairman Jakes Gerwel. �
5. Why do 9 out of 10 druglords prefer SAA? �
Two recent significant drug-busts at Heathrow, involving SAA crew have not only disgraced the airline, but could threaten its continued operations to the UK. In 1997 SAA was threatened with impoundment of aircraft and a ban on flights into Heathrow after crew were found to be trafficking drugs. �
6. Two strikes and you’re out? �
The airline is facing a wider strike than the present one by Satawu. The strike was sparked by the disclosure that despite SAA heading for a massive loss in 2009, retention bonuses have been paid to senior management. The 2006 strike crippled the airline for a week and dealt it a serious financial blow. �
7. Can we have our money back? �
Air Tanzania owes SAA almost R43m and SAA is having to take legal action to extract the money. This dates back to the partnership between the two airlines from 2002 to 2006 which turned sour when the East African carrier sustained loss upon loss. Air Tanzania is now a floundering 3-aircraft carrier owned by the Tanzanian government.