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Flight Centre’s decision on SAA tickets unfortunate, says Fedusa

The travel agency announced last week that it reached the decision after its preferred travel insurance provider and their underwriters were no longer willing to cover the airline under an insolvency benefit.

Picture: South African Airways

PRETORIA - The Federation of Unions of South Africa (Fedusa) has warned that Flight Centre's decision to stop selling South African Airways (SAA) tickets is putting the livelihoods of thousands of workers at risk, as the company battles to stay afloat amid a liquidity crisis.

The travel agency announced last week that it reached the decision after its preferred travel insurance provider and their underwriters were no longer willing to cover the airline under an insolvency benefit.

The cash crisis was made worse by a Numsa strike two weeks ago, which cost the ailing national carrier more than R50 million per day.

Fedusa has described Flight Centre’s decision as unfortunate, saying concerns that SAA flights might be grounded are premature.

It said the festive season provides an opportunity for the company to boost tourism revenue and the company cannot afford to miss out on this opportunity.

The union adds the livelihoods of the workers are being gambled with. The trade federation has demanded that former board chair Dudu Myeni and others responsible for the state of the carrier should be held accountable and criminally charged where applicable.

Meanwhile, unions Numsa and the South African Cabin Crew Association have denied their strike crippled SAA financially.