Major Travel Company, Flight Centre Stops Selling SAA Tickets

Chinedu Eze with agency report

International Travel group, Flight Centre, South Africa, has announced that it has made the decision to stop selling South African Airways (SAA) tickets, citing “ongoing concerns” about the airline’s financial stability and the unwillingness of its travel insurance providers to continue covering the airline.

Flight Centre, South Africa, a subsidiary of the Australia based company, stated this in its website and industry analysts said that this would mark the beginning of the end of the airline if there is no urgent intervention.

Flight Centre is South Africa’s largest travel specialist with 170 businesses across leisure, wholesale and corporate brands.

According to South Africa based business medium, Fin 24, the company’s decision to stop selling SAA tickets was contained in a letter, signed by the, Managing Director for the Flight Centre Travel Group in the Middle East and Africa, Andrew Stark and dated November 28, 2019.

The letter said, “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.

“On November 27, 2019, we were informed that our preferred Travel Insurance Provider […] 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.

“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,” the company said.

The company said customers would still have the option to book with SAA if they wished, Flight Centre said, but “we would strongly advise that alternative options are utilised until certainty regarding the airline’s long-term sustainability is obtained”.

Contacted by Fin24 yesterday, Stark did not comment in detail, but confirmed the authenticity of the letter.

Solidarity’s chief operating officer, Dirk Hermann, told Fin24 on Thursday afternoon that the move was a significant and radical step, citing “extreme uncertainty” at the airline.

Solidarity wants SAA placed in business rescue.

Financial Times had on Wednesday reported that the South Africa airline was at the verge of collapse.