SA Airlink attempts to interdict SAA, BRPs meeting

Reading Time: < 1 minute

The South Gauteng High Court in Johannesburg will hear the matter between SA Airlink and South African Airways (SAA) Business Rescue Practitioners (BRPs).

SA Airlink has applied for an interdict to prevent SAA and its BRPs from convening a meeting of creditors to consider the business rescue plan for the national carrier.

The meeting was scheduled to take place on Wednesday.

SA Airlink wants the business rescue process terminated and the appointment of the business rescue practitioners set aside and wants SAA to be placed in provisional liquidation.

Two unions have also approached the court to have the meeting stopped.

Airlink which is a privately-owned, BBBEE Level 4 business and has the largest fleet of commercial jetliners in Southern Africa, says they are not competitors of SAA as alleged by the Department of Public Enterprises but a franchise.

Earlier this year the airline terminated its franchise agreement after SAA went into business rescue and failed to pay R700 million of revenue for tickets issued by them.

In a statement SA Airlink says the proposed SAA business rescue plan prejudices creditors, including Airlink, to the benefit of the Department of Public Enterprises.

The airline also notes the plan is commercially questionable, especially given the uncertain outlook for the industry.