Flight Centre to stop selling SAA tickets

Travel group Flight Centre has announced its decision to stop selling South African Airways(SAA) tickets due to “uncertainty” in the market. This after reports its travel insurance provider and others were no longer willing to cover the airline.

It said in a statement: “Over the last month there have been several publications in the media regarding ongoing concerns in respect of the financial stability of South African Airways (SAA). On 27 November 2019, we were informed that our preferred Travel Insurance Provider, namely Travel Insurance Consultants (TIC) and their underwriters, are no longer willing to cover SAA under their Travel Supplier Insolvency benefit, due to doubts concerning the long-term viability of the airline. We have been advised further that a number of other global insurers have taken a similar approach.”

The travel group has, however, left SAA open as an option to customers who may still want to travel with the airline, though it “strongly” advised using other alternatives “until certainty regarding the airline’s long-term sustainability is obtained”.

“In light of the above developments and the continuing concerns regarding SAA, Flight Centre Travel Group South Africa has made a decision to no longer sell SAA, until such time as we have obtained certainty in the market.”

Public Enterprises Minister Pravin Gordhan said on Thursday that the SAA strike had resulted in a “sudden deterioration” of the airline’s financial position.

The ministry was working with the airline to formulate immediate actions that would enable SAA to carry on with business.

“Government efforts, under the direction of Public Enterprises Minister Pravin Gordhan, are focused on ensuring that the airline is stabilised in the short term and has the necessary support from all stakeholders.

“They also seek to ensure that governance and leadership issues are being addressed, including the process of appointing an effective management team.

“The efforts, added the ministry, are to ensure that the airline returns to a stronger financial footing in the medium to longer term,” said the ministry in a statement.

It further called on all key role players in the airline to make necessary contributions to ensure its survival.

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