The National Transport Movement (NTM) says despite the economic impact of the COVID-19 pandemic, it believes the aviation sector will restore its finances once operations resume.
NTM made these comments as creditors prepared to either vote in favour of or reject the South African Airways (SAA) Business Rescue Practitioners’ (BRP’s) plan.
Government has called on creditors, unions and other stakeholders to vote in favour of the deal – saying it is the only realistic path for a new national carrier to emerge. Some unions last week accepted voluntary severance packages for staff.
Around 2 700 SAA employees are expected to be retrenched.
NTM President Mashudu Raphetha says, “The aviation sector is not like any other sector. It is quick to recover. So we know that we are still fighting this pandemic but as soon as we start touching the skies, it will be clear. We are aware that the money being proposed is huge but remember, that money will mean that SAA is now going to be a growing concern in the next year or so.”
“So I think the government is trying to maintain the fact that SA deserves to have a national carrier, everybody will be using the carrier. The new management and board will be in place,” adds Raphetha.
SAA to be transformed into a new competitive airline:
Creditors to vote over SAA’s BRP revised rescue plan
Creditors will on Tuesday vote in favour or reject the South African Airways (SAA) Business Rescue Practitioners’ revised rescue plan.
Government has called on creditors, unions and other stakeholders to vote in favour of the business rescue plan.
The Department of Public Enterprises says this is the only realistic path to restructure the airline and for a new national carrier to emerge.
A vote in favour of the plan by 75% of the voting interests would be required to carry the vote.
Should creditors vote not to support the business rescue plan, SAA would face liquidation.
In a statement, the Department of Public Enterprises says cabinet has also expressed its support for the concerted effort to mobilise funding from various sources to finance the business rescue plan.
Should SAA be liquidated, every employee, no matter the numbers of years spent at the airline, will receive only a capped severance settlement of R32 000 and lose all other benefits.
Below is media statement from the Department of Public Enterprises urging creditors, unions and other stakeholders to vote in favour of a business rescue plan for SAA: