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

  • 📰 City_Press
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

South Africa Headlines News

South Africa Latest News,South Africa Headlines

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.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

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

PRIVATISE THE CARRIER

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 7. in ZA

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

In City Press Business: SAA on brink of collapse; Dubai wants to boost trade with AfricaIn City_Press Business today: Regardless of the bailout from government, SAA may not be able to avoid being placed under business rescue; Where to save R600 a month? There are several options open to grow your money, writes mayaonmoney mayaonmoney It took a while BUT SA is being ANC'd !!!
Source: City_Press - 🏆 7. / 72 Read more »

SAA workers accept pre-strike wage offerBut Numsa and Sacca won a small concession by persuading SAA to implement the wage increase two months earlier 😂😂😂 This is the most misunderstood or deliberately distorted agreement. Not sure the workers fully understand it. I have seen 8% reports. Workers were the ultimate losers.
Source: BDliveSA - 🏆 12. / 63 Read more »

Up, up and away – SAA confirms all flights back on scheduleSAA workers have returned to work on Saturday after unions signed a 5.9% wage agreement with the embattled airline on Friday. boycottSAA
Source: ewnupdates - 🏆 30. / 53 Read more »

SAA strike is over, but where will the money come from | Pretoria NewsPublic Enterprises Minister Pravin Gordhan said sacrifices were required on all sides, as SAA tries to turn its fortunes around after years of losses. The Sky! Errr, overseas bank accounts, bet there's a load of stash there; which rightfully belongs HERE! I guess the print works are in high gear !
Source: IOL - 🏆 46. / 51 Read more »

'Our goal was to save SAA': Wage agreement will benefit everyone, say unionsThe National Union of Metalworkers of SA (Numsa) and the SA Cabin Crew Association (Sacca) said on Friday that the wage agreement reached with SAA would not only benefit workers, but also the airline's management. Its like saying you saved the rest of the country by killing your mother-in-law. I take it Numsa wants to obtain membership gains in the stand-up comedy sector.
Source: SowetanLIVE - 🏆 13. / 63 Read more »

Normal SAA services resume as strikers vow to eliminate graft'We are adamant this entity will be cleaned up. They can kiss those evergreen contracts goodbye,' Numsa spokesperson Phakamile Hlubi-Majola said.
Source: TheCitizen_News - 🏆 6. / 75 Read more »