The Public Enterprises Department says the process of provisional liquidation of the South African Express must be resolved as soon as possible for the benefit of workers who are not earning salaries.
This week, the employment contracts of the SA Express employees were suspended, paving the way for the beginning of the liquidation process.
Acting Director-General Kgathatso Tlhakudi says the lives of the many workers at the airline will remain uncertain until everything is sorted out.
“The future of SA Express needs to be decided very soon so that the situation that the workers find themselves in there can at least be brought to an end. So that they can start planning their future. And this is … obviously reliant on what sort of the airline industry is going to emerge after the lockdown period. What we know from IATA and AKAU numbers is that literally around the world the industry is getting disseminated, and that is what we know and the propensity to fly is not going to be recovered any time soon.”
In the video below, Public Enterprise Department presents its annual performance plan and budget:
Aviation experts say the sector urgently needs government support to prevent more companies from going under. Independent transport economist Dr Joachim Vermooten noted recently that, “No scheduled airline, even though well-capitalized, will be able to sustain the financial impact of the grounding orders applied to airlines. It really requires the government to come to the party and provide financial assistance otherwise the impact will be greatly felt in the country.”