SAA on brink of collapse – even R2bn from state unlikely to save it

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Even if government gives bankrupt national carrier SAA the R2 billion it needs to pay salaries and stay in the air until December, it will probably not be enough to prevent the airline from being placed in business rescue

With the airline bleeding cash and unable to guarantee wages, business rescue seems to be the only option available

In fact, it could be the last decision that government, the public enterprises minister, SAA’s board of directors and its acting management make in respect of the beleaguered airline. In addition, Klopper said that government and SAA had limited grounds for opposing Solidarity’s application. SAA did not own its aeroplanes but leased them, and had few other assets to balance out its debt of R20 billion, he added.

Dirk Kotzé, a political science professor at the University of SA, said given the fact that SAA was not an essential entity, the government might be secretly relieved that somebody else was taking over the ailing airline.The business rescue practitioners must hold an initial meeting with SAA’s creditors within 10 days, subject to court approval, and then deliver an opinion on whether the airline can be saved.


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High time embattled flysaa got its wings clipped for good

Why does the union not help to keep jobs. If it collapse will they pay the employers?

The USA does not have their own national airline. Shut down PANAM decades ago. Yet we MUST have a national carrier as a matter of national pride 🤔🤔🤔

But how can SAA collapse when it makes R53m per day? Pls help me here

Just close the damn thing down. We'll fly with other carriers that can balance their books and keep their staff paid.

So the 5% the unions were celebrating is a mirage, and if it gets to that, many more jobs will be lost


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