Cabinet says it supports the proposal on the formation of a new airline to succeed South African Airways (SAA).
In a statement on its meeting, cabinet says a new restructured and reformed national carrier is the only realistic pathway.
Cabinet received progress report on #SAA business rescue process from #IMC on the SAA. Cabinet believes restructured airline will pursue transformational agenda such as lack of opportunities for the advancement of black pilots after 26 years into our democracy. #PostCabinet pic.twitter.com/oCKKxXPpOT
— South African Government (@GovernmentZA) June 26, 2020
Cabinet also supports the effort to mobilise funding from various sources, including from potential equity partners for the uptake of the new airline.
It also believes a restructured airline will pursue the transformational agenda, such as the lack of opportunities for the advancement of Black Pilots after 26 years into democracy.
Cabinet has received a progress report on the SAA business rescue process from the Inter-ministerial Committee on the SAA, chaired by Public Enterprises Minister Pravin Gordhan.
A creditors’ meeting to vote on the SAA Business Rescue plan has been adjourned until the 14th of next month amid continued disagreement.
In the video below Analyst Khaya Sithole discusses the cost of SAA’s Business rescue plan: