Breaking: South African Airways Puts Airbus A340 Fleet Up For Sale

Cash strapped South African Airways has launched a new fundraising initiative. In a bold move, the airline is looking to sell off a number of its A340 aircraft as well as spare engines and auxiliary power units (APUs) for those planes.

SAA Airbus a340
SAA is selling off nine A340 aircraft. Photo: Bahnfrend via Wikimedia

What’s happened?

South African Airways has been in some financial difficulties for some time. Now, it seems the airline is looking for creative ways to dig itself out of its debt laden pit, by putting up a bunch of its aircraft for sale.

According to a tender proposal seen by Simple Flying, the airline is requesting bid to buy a number of its A340 aircraft. In total, there are nine A340s up for sale, as well as 15 spare engines and 4 APUs. The aircraft that are up for sale include four A340-600s and five A340-300s.

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The tender has been live since the 10th of January, and interested parties have until the 30th January to submit their bids. It appears that the sale is linked to a ‘business rescue’, as it states in the proposal:

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SAA is currently under Business Rescue in line with the South African Companies Act and a Business Rescue Practitioner has been appointed who has approved the sale of the assets as mentioned in the Request for Proposal.

Which aircraft will be sold?

According to the tender, the aircraft up for sale are as follows:

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Bizarrely, many of these aircraft are still in active service. Of the -600s, ZS-SNC is regularly running between JNB and FRA, while ZS-SND, ZS-SNF and ZS-SNG are all regulars on the JNB to JFK route.

Of the -300s, ZS-SXD just got back from Hong Kong, ZS-SXE goes from JNB to Munich (MUC), SXF runs between JNB and Perth (PER) while SXG is frequently on the popular Johannesburg to Cape Town route. Only ZS-SXH appears to be out of use right now.

South African Airways
The two A340s used in the flypast are not for sale. Photo: South African Government.

Happily, neither of the aircraft involved int that stunning flypast last year (ZS-SNE and ZS-SNH) are not included in the sale.

Altogether SAA has seven A340-300s and nine A340-600s in its fleet. This sale will, therefore, see SAA disposing of a large portion of its A340 fleet.

Why is SAA selling these planes?

Simple Flying reported back in December that the government was set to restructure SAA, following strikes by its workers and years of financial strife. The South African government was looking to take steps to improve SAA’s profitability and save it from a state of bankruptcy.

At the time, the South African government said,

“SAA … cannot continue in its current form…The airline group will now go through a radical restructuring process which will ensure its financial and operational sustainability. There is no other way forward…The [government] is committed to a viable, sustainable, profitable national airline. It is our collective responsibility as South Africans to support SAA in its efforts to restore sales confidence among its customer base and rebuild revenues in the shortest possible time.”

SAA A340-600
Is this the first of many changes at the airline? Photo: Arcturus via Wikimedia

At the time, no details emerged regarding exactly what this would entail. Now, it seems we are seeing the first of the measures being put in place to improve the airline’s financial standing.

For the A340-600s, with so many on that New York route, it would make sense that these birds would be looking for retirement. SAA is racking up the number of brand new A350s in its fleet, which offer far more economical trips between South Africa and the US east coast.

SAA A350
SAA has four A350s in its fleet. Photo: SAA

While there doesn’t seem to be a clear plan for a replacement for the airline’s A340-300s, the sale is likely to take some time to materialize. This means SAA has plenty of time available to change its schedules or even lease different aircraft to maintain its capacity on these routes.

What do you make of this? A good move for SAA in the long run? Let us know in the comments.

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Chris

Does this mean they going to cut routes? IE Perth, HKG, Frankfurt are all serviced by the A346

High Mile Club

That’s a possibility unless they can line up a replacement aircraft by the time they’re sold.

Lets S

Very likely. I dont think they will cut the Perth route which is currently served by an A340-300. Hong Kong is also served with an A340-300. Frankfurt might be served using the remaining A340-600 fleet.

Ziyaad

Perth is currently served by the A330 and the other routes will probably be taken over by the A350’s

Gerry S

Its a good move to replace the A340 fleet. However, I have some doubts as to whether it will be successful in selling them at a time when other airlines are putting them out to pasture. They should have more luck selling the spare engines which could be adapted to the very many A320ceos still out there. Overall though, I think they will lose their pants on this one.

Paul Proctor

Old, slow gas-guzzlers. SAA won’t get anything for the airframes.

Peter Brown

SAA is about 1 step away from being bankrupt. The Zuma regime milked SAA for all its’ worth like they did the government. The last time I flew into JNB most of the ground staff were doing nothing and off hand when you did approach. Let this over staffed airline and start over.

Wilco

I thought we were leasing these aircraft? And now we are selling them? Bizarre SAA!!!!

Hessu

How much they pay if someone flies them away ?

Hessu

How much they pay if someone would fly them away

Charles Bolland

The saffas that work for me, hate SAA. They don’t use the airline to fly home to Africa. Let them sell all the fleet and start a fresh.

Alan

I think it will be a good idea to sell this old birds and goes for the new efficient airbus A350’s.. Maybe it would try to reshape the SAA airways.lets hope they don’t cut the routes.

David Porter

As a proud South African, my hope is that the once proud and dominant SAA will rise from the ashes to once again fly the skies of the world, in spite of the best efforts of incompetent, useless Black ANC corruptin and mismanagement.

Greg J

corruption is corruption…we should not identify it by colour, race etc…

lagrima no rosto

‘SAAPA has given notice to the pilots that 250 pilots will be retrenched. That is about half of the pilots’ This is hear say with my ear on the ground.

Anwar

SAA needs to be operated like A business. Also fares need to be competitive. In the past I only flew our national carrier on local and international routes. December 2018 first time in years flew them again. In March I plan trip to Turkey, but unfortunately it will be with another airline. My saving allows me extra nights in 5star luxury. Always got great service from SAA. Such a pity we have to look elsewhere

Gerry S

Hear! Hear!

George

Sorry to miss the daily flyover of the A340 coming over Pattaya on its way to HK.