Pravin Gordhan, South Africa’s Minister of Public Enterprise has asked South Africa Airways Administrators to extend the deadline for workers to agree to severance packages because he wants to explore funding opportunities to save the now-bankrupt National Airline.
Gordhan has forwarded a proposal to build a new Airline out of SAA because he opposes the idea brought about by the SAA business rescue team to persuade labour groups to sign off on retrenchment deals as a possible alternative to liquidation proceedings, which could see the near 5,000-strong workforce made unemployed without compensation.
SAA’s entire fleet is now grounded due to Coronavirus pandemic which worsened financial troubles for the airline leading to a plea for a further bailout from the government last month. However, the government told the airline administrators to seek funding from somewhere else.
Since then, there has been a lot going on with the Department of Enterprises saying it wants to create a national carrier that’s both publicly and privately owned, profitable and able to serve South Africa’s trade connections. last Friday.
Old SAA is dead but what will be different with the new SAA?
The South African government is considering a business model which would see South African Airways (SAA) winded down and replaced with a new state-owned airline.
Speaking to the City Press, public enterprises spokesperson Richard Mantu said the department was looking at how this new national carrier could remain competitive and offer safe and high-quality service.
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