South African Airways Gets Unlikely Help From Coronavirus Hit

While international airlines have been blindsided by the impact of the coronavirus on global travel, the outbreak may bring unexpected benefits for South African Airways as it battles to lower costs, Bloomberg News reported. A sharp reduction in international flights has deflated the price of leasing jets and made it easier for state-owned SAA to re-negotiate terms, according to Siviwe Dongwana, one of two administrators hired by the government to draw up a turnaround plan. Equally, this week’s oil-price crash triggered by Saudi Arabia and Russia will lower the cost of fuel, he said. “The coronavirus issues and the impact on the industry means that a lot more lessors are going to find themselves with a lot of aircraft,” the administrator said in an interview on Wednesday in Bloomberg’s Johannesburg office. Read more