South African Airways
by GENEVIEVE KGAFE-MASHAMBA
VANDERBIJLPARK, (CAJ News) – THE South African government is in a race against time to save the national airline amid the carrier lurching into financial turbulence.
It is feared the South African Airways (SAA) could have its wings
clipped as of today (May 8).
The Ministry of Public Enterprises and business rescue practitioners
(BRP) are leading efforts to save the airline.
“We are meeting with the business rescue practitioners to discuss
finances, how much money can be found to carry on beyond May 8,”
Minister Pravin Gordan said in a virtual briefing to parliamentarians.
SAA received bankruptcy protection in December in an effort to save the national carrier, which is reported not to have turned a profit since 2011.
Gordan has called on BRPs not to engage in any fire sale of SAA’s assets or liquidation when alternatives could be pursued.
The national carrier has cost the taxpayer more than R20 billion over the past three years.
However, the government has now tightened the purse strings, prompting rescue specialists to propose severance packages for all staff members.
SAA is one of the most beleaguered state entities the government of
President Cyril Ramaphosa is battling to keep afloat.
– CAJ News