SAA To Delay Flights And Salaries If Not Bailed Out Timeously

SAA entered a form of bankruptcy protection last month in an effort to rescue the company and 10,000 related jobs.

SAA To Delay Flights And Salaries If Not Bailed Out Timeously-SurgeZirc SA
SAA fight/Photo File: Screengrabs

The South African Airways (SAA) might have to suspend flights and make late payments of salaries should the government not be able to bail them out timeously with R2 billion.

The trade union’s official stated on Wednesday that government had promised to come with a plan and bail the rescue the state-owned enterprise from its financial woes.

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SAA entered a form of bankruptcy protection last month in an effort to rescue the company and 10,000 related jobs.

The airline has not made a profit since 2011 and relies on government support. It has reportedly lost more than 28 billion Rand (£1.5 billion) over the past 13 years.

During the time the airline was assured  2 billion rand from the government and 2 billion rand from creditors.

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However, the unions have were addressed by the specialists whose work is turn around the SAA. They were told that the state had not yet been able to provide its portion of the funds and that the 2 billion rand from lenders had been exhausted, National Transport Movement president Mashudu Raphetha told Reuters.

Unions were told SAA’s business rescue practitioners needed clarity from government on the 2 billion rand of promised funding by the end of Jan. 19, Raphetha said.

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