Over 600 jobs on the line following SA Express's provisional liquidation

SA Express was placed under business rescue in February and suspended its operations last month due to the COVID-19 outbreak.

FILE: The airline needed over R300 million in government funding for any hopes of survival but government couldn’t afford this. Picture: Supplied.

JOHANNESBURG - Over 600 employees at SA Express are facing job cuts after the airline was placed on provisional liquidation.

Businesses rescue practitioners filed the application in the High Court in Johannesburg on Tuesday, warning that the state-owned airline had no prospects of survival after government denied it post-commencement funding.

SA Express was placed under business rescue in February and suspended its operations last month due to the COVID-19 outbreak.

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The High Court in Johannesburg has given SA Express and all affected parties until June to give reasons why it should not be placed under final liquidation.

The embattled airline is the first state-owned company to be placed under provisional liquidation after the failure of its business rescue plan.

The liquidation of the SA Express will mean its operation will be shut down and over 650 employees will lose their jobs.

The airline needed over R300 million in government funding for any hopes of survival but government couldn’t afford this.