South African Airways has nearly no cash left and may miss salary payments this month, a board member said Wednesday, as a crippling 6-day strike has pushed the airline to the brink of financial collapse. The standoff between SAA and 2 of its largest unions over wages and job cuts is a critical test of president Cyril Ramaphosa's pledge to fix ailing state firms. But the govt has few easy options to rescue SAA. The airline has received more than US$1.35b in bailouts over the past 3 years and is hobbled by an unprofitable routes and a fleet of inefficient planes. Officials have said they want to stabilise SAA before selling an equity stake. But the rapidity of SAA's financial slide and ballooning state budget deficits mean the govt's commitment to salvaging the airline is being sorely tested. <br/>
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A trade union representing Lufthansa's cabin-crew Wednesday threatened strikes that could fall during the busy Christmas period if the airline does not make concessions in a wage dispute. Trade union UFO said that if no progress was made during talks, it would announce next Thursday when and where strikes would take place and for how long they would last. A Lufthansa spokesman said the airline would use the time to try to come to an agreement with UFO, adding that a solution could only be found in joint discussions and arbitration. "You can't strike and arbitrate at the same time," the spokesman said. Cabin crew held a strike over pay and pensions for 2 days earlier this month, resulting in the cancellation of 1 in 5 flights, affecting around 180,000 passengers and costing the airline E10-20m. <br/>
Lufthansa Group CE Carsten Spohr said every airline needs a partner in today’s tough environment and bankrupt Alitalia—which is looking for rescue partners—would be very much challenged on its own to make it. Squeezed by tough competition from LCCs and high-speed trains, Alitalia filed for bankruptcy in May 2017 and its rescue consortium is scheduled to present a formal offer for the carrier’s relaunch by Nov 21 in a deadline that has been moved back several times. Lufthansa had previously expressed an interest in taking a stake in Alitalia, but only after the airline had been restructured. “What are we telling the Italians: It is much more important than investing the last 10% in Alitalia—it is a question of if you are alone in Europe or you have a strong partner,” Spohr said. <br/>