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SAA’s BRPs to produce plan for airline by next week: Dept of Public Enterprises

It's supposed to detail how government will form a new airline from the ruins of SAA, which will be shutdown.

Picture: @flysaa_care/Twitter

JOHANNESBURG - The Department of Public Enterprises said South African Airways (SAA)’s business rescue practitioners (BRP) have indicated they would produce a plan for the embattled airline next week.

It's supposed to detail how government will form a new airline from the ruins of SAA, which will be shutdown.

But one aviation expert believes the creation of a new airline was not the answer.

Government is vague about how the new airline will be different from the current failing SAA.

However, a new leadership compact has been signed with unions and it’s working with an aviation firm to get the airline up and running.

The Department of Public Enterprises' acting DG Kgothatso Tlhakudi said the plan was in motion: “South Africa is also a world destination, this will be critical for the tourism industry as well as the economy. It is for these reasons that a capable national carrier is non-negotiable.”

“But aviation expert Phuthego Mojapele said this wouldn’t work: “There will also be a route as well, that they will probably be owing in terms of the lending fees, the lease agreements and so forth.”

With the global aviation industry on its knees due to the COVID-19 pandemic, it's unclear how government will make this work.