SA Airlink is headed to court to try to prevent R700 million of its cash from disappearing into the financial black hole of SAA’s finances.
Airlink, which employs 1 739 people, could be brought to its knees if it does not get its money back, the airline’s CEO Rodger Foster states in an affidavit before the Johannesburg High Court.
In a separate case, transport and logistics company Ziegler SA is applying to have SA Express placed in business rescue. An affidavit by the managing director of Ziegler reveals that SAA also owes state-owned SA Express R20 million for ticket sales. Business rescue usually protects companies against claims for debt incurred shortly before the company was placed in business rescue, but Airlink argues that this money is not really debt. It was always Airlink’s money for flights it operated independently; the tickets were merely sold by SAA as an agent of Airlink, argues Foster in court papers.
In December, SAA issued the November statement, as is the normal practice. That was on December 6, the day after the airline went into business rescue.
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