SAA to enter into business rescue

Posted by Leila Stein on 5 December 2019

The South African Airways Board of Directors has announced that it will place the company into business rescue from Thursday 5 December.

This decision has been taken to try and solve the company’s on-going financial struggles.

‘SAA understands that this decision presents many challenges and uncertainties for its staff. The company will engage in targeted communication and support for all employee groups at this difficult time,” they said in a press statement. “SAA will endeavour to operate a new provisional timetable and will publish details shortly. The company greatly appreciates the continued support of both its customers and partners in the travel industry around the world.’

This decision was leaked early in a letter sent by President Ramaphosa to Cabinet that said that SAA needs to go into voluntary business rescue, according to News24. 

‘This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets of SAA and help to restructure and reposition the entity into one that is stronger, more sustainable and able to grow and attract an equity partner,’ said Minister of Public Enterprises Pravin Gordhan.

The national airline said it will announce the appointment of business practitioners in the near future.

In the meantime it assured customers that services operated by SAA’s subsidiary airline, Mango, will continue as usual and as scheduled.

Image: @airplusnews_EN/Twitter

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