‘Hamba kahle, totsiens’ to SAA as govt promises new national airline
The department of public enterprises said the new airline will not be the old SAA, which has been in endless financial trouble, but a restructured airline that South Africans can be proud of.
JOHANNESBURG – Government said it will be starting up a new airline to replace South African Airways (SAA).
The department of public enterprises said the new airline will not be the old SAA, but a restructured airline that South Africans can be proud of.
The move comes as the SAA business rescue practitioners moved to axe the entire workforce of SAA because the airline is broke.
It’s an end of an era for SAA, which has been in the air for 86 years.
The airline has been depending on government bailouts until it was placed under administration last year because of financial problems.
Last month, the business rescue practitioners asked for more money from government but were denied this.
Leading to them saying they have no choice but to terminate all employees of SAA and sell off its assets to pay its debt.
But it seems government and the unions have reached an agreement for a new airline with a business rescue plan that has not yet been agreed on.
The department of public enterprises said SAA employees will be transitioned and new leadership and equity partners will be sought.
Government said this new airline is set to compete in a world post-COVID-19.