Parliament confirms Ramaphosa ordered SAA to be placed under business rescue

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The Parliamentary Committee conducting an oversight of the airline has confirmed that President Cyril Ramaphosa has ordered that embattled South African Airways (SAA) should be placed under business rescue.

SAA which has not made a profit since 2011 and is dependent on government bailouts to remain solvent, suffered a crippling strike last month.

The action forced the airline to cancel hundreds of flights and pushed it to the brink of collapse.

Ramaphosa is reported to have called for a change of approach on SAA and instructed the government to implement a voluntary business rescue process.

In a business rescue process, a specialist administrator takes control of a company with the aim of rehabilitating it to improve its chances of surviving or to secure a better return for creditors than they would get from a liquidation.

SAA spokesperson Tlali Tlali could not be reached for comment.

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