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SAA Business Rescue Plan Drawn Up

June 18, 2020

Department of Public Enterprises

Government as the sole shareholder supports the South African Airways (SAA) business rescue plan.

The public enterprises department emphasized this in a statement on government’s preliminary response to the publication of the SAA business rescue plan.

The department added that support for the plan is predicated on it resulting in “a viable, sustainable airline that provides integrated domestic, regional and international flight services”.

The department declared that it remains committed to “support a competitive, viable and sustainable national airline”.

Business rescue practitioners took control of SAA in December 2019.

“The aviation industry in South Africa requires the capabilities of a SAA that is reconstituted, restructured and reinvigorated, without the legacy burdens, including corruption, poor leadership and unsustainable costs, which have beset SAA’s past.”

The department also highlighted that government has facilitated consultations with employee representatives in the Labour Consultative Forum.

“This process must be embraced by the BRPs and taken to a state of completion.”