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SAA placed under Business Rescue

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South African Airways (SAA) has been placed under business rescue.

Minister of public enterprises Pravin Gordhan, issued a statement in the early hours of Thursday (5 December) to confirm that SAA will be placed into business rescue immediately.

This decision was taken by its board, and supported by government.

In a statement the minister said: “This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets of SAA and help to restructure and reposition the entity into one that is stronger, more sustainable and able to grow and attract an equity partner.”

He added that SAA’s reliance of government finances must be reduced as soon as possible. But government will give SAA an additional R2 billion “a fiscally neutral manner” to help keep the airline operational.

“It must be clear that this is not a bailout,” Gordhan added. “This is the provision of financial assistance in order to facilitate a radical restructure of the airline.”

The business rescue process will begin on December 5th. A business rescue practitioner will be chosen to take charge of the business.

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Jeanette Briedenhann
Jeanette Phillips joined the team in 2016. She developed a passion and love for all things-travel related in her role as travel journalist, a position she held for over seven years. A brief exodus into the corporate marketing sphere proved that there is no better industry than the travel industry. Research and writing are two of Jeanette’s greatest passions, but she is always open to new challenges and different ways of doing things.

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