No decision yet on SAA Business Rescue Proposal – SA Government

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The Public Enterprises Department says it has received a draft Business Rescue Plan for South African Airways, which is under business rescue.

The department’s spokesperson, Sam Mkokeli, on Monday said government has not yet discussed the plan and no decisions have been taken on some of the proposals it contains.

The airline went into voluntary business rescue in December and introduced a radical restructuring process to ensure its financial and operational sustainability to reduce its ongoing impact on the fiscus.

“The draft plan has been prepared by the Business Rescue Practitioners and is meant to be discussed by various stakeholders, including creditors, employees, and government.

“President Cyril Ramaphosa on Sunday told members of the South African National Editors’ Forum that he saw a good future for the airline, which enjoys support right across the continent. The aviation industry plays a pivotal role in the battle against Coronavirus, as Johannesburg could be a hub to distribute Covid-19 medical supplies,” said Mkokeli

.

He said a viable aviation industry would also anchor many efforts to revive the country’s economy and create jobs.

“Government has embraced the restructuring process as part of a path to a new, dynamic and financially viable airline that will serve South Africa’s economic and strategic interests.”

Mkokeli said the department would review the plan, explore various funding options, and communicate its decisions in due course.

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