Business analyst, Khaya Sithole says in the absence of a formidable business rescue plan, it seems the only path for South African Airways (SAA) is one of liquidation and the formation of a new airline.
The National Transport Movement has said that a decision to ground the airline was reached between unions and Public Enterprises Minister, Pravin Gordhan.
However, this was disputed by the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca), the other two unions at SAA.
Spokesperson for Public Enterprises, Sam Mkokeli says the government is reviewing its options pertaining to the airline’s assets and will inform the public of further developments.
Sithole says it is concerning that the Business Rescue Practitioners have not yet unveiled a plan to rescue SAA, given the challenges of the coronavirus pandemic.
He says, “The unfortunate reality is that the business rescue process at SAA started on December 5, 2019 and even to date there isn’t a single person who can say, ‘this is actually the business rescue plan that has been crafted’.”
In the video below, unions speak about the restructuring at SAA:
‘SAA can be saved’
Unions at SAA have expressed optimism the airline can be saved but the government must scrap its historical debt. The unions had a meeting with Minister Pravin Gordhan to try and avoid the liquidation of both SAA and SA Express.
Sacca president, Zazi Nsibanyoni-Mugambi has outlined how the airline can be salvaged. “We working and taking various suggestions on how we can save SAA and in what form SAA will continue to exist. What we’d like to see is obviously a brand new fit for purpose management, a brand new board that will involve unions and obviously investment from a strategic equity partner. We’d also like to see government clearing the historical debt and allow SAA to retain most of the employees.”
In the video below, Sacca’s Zazi Nsibanyoni-Mugambi says unions are heading to court over looming retrenchments:
INFOGRAPHIC: SAA fact sheet:
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