SAA waiting on funds from govt to pay voluntary severance packages
The financially strapped airline has accepted over 3,000 applications from a total of 5,000 employees.
JOHANNESBURG – South African Airways (SAA) business rescue practitioners said they were awaiting funding from government to be able to pay out the approved voluntary severance packages.
The financially strapped airline has accepted over 3,000 applications from a total of 5,000 employees. This offer came amid attempts to restructure the national carrier.
SAA has approved the voluntary severance packages but is still waiting for the money to pay them out. Government, the major shareholder at the broke airline, has yet to say where the money will come from.
SAA needs over R10 billion to implement the business rescue plan, which includes paying the packages of retrenched workers.
The department of public enterprises said talks were ongoing with interested parties to invest in SAA.