With Covid-19 halting air travel, labour unions have been told that lack of post-commencement funding and travel bans have forced the airline to the point of no return.
), after its business-rescue practitioners informed labour unions over the weekend that they intended to petition the courts to place the airline into liquidation.
The department, which has previously said it has no confidence in the two and has started its own process to develop a rescue plan, unsuccessfully tried to convince SA Express’s creditors to remove Mkhombo and Terblanche as practitioners, claiming they weren’t independent because they were appointed as a result of a court application by one of SA Express’s creditors, Ziegler South Africa.
The extent of the cash-flow problems has meant that SA Express cannot guarantee salaries, and has not yet paid statutory contributions towards employees’ provident fund, pension, income protection, UIF, and pay as you earn, the business rescue practitioners said.“In addition to all these challenges, the situation is now exacerbated by the recent worldwide spread of, which has already had a significant impact on the aviation industry globally.
“In light of the above and based on our own objective assessment of the plethora of challenges faced by the company, we have come to the conclusion that a reasonable prospect to rescue the company no longer exists and, consequently, we will begin a process to convert the current business rescue proceedings of the company into liquidations as envisaged in terms of section 14 and of the Companies Act with immediate effect. This will be done by way of application to court.
SAA, which is also under business rescue and is in the process of restructuring that will shed about 4 000 jobs, will now operate only its domestic route between Johannesburg and Cape Town. Earlier this year it announced that it would pull out of unprofitable routes, including East London, Port Elizabeth and Durban.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Covid-19 disrupts government in SA - The Mail & GuardianThe government has put stringent measures in place to slow the spread of the coronavirus, and the National Assembly, provincial outreach programmes and municipalities have had to comply
Read more »
‘Up to 1-million at risk of Covid-19 in SA in 40 days’Government needs to take drastic action to avoid the country reaching a tipping point of 100 locally acquired cases, according to a team of researchers at Wits university
Read more »
Beuran Hendricks on new list of Cricket SA contracted players, Faf also in the mixLions left-arm seamer Beuran Hendricks has been rewarded with a lucrative Cricket South Africa (CSA) national contract following his stellar Test debut for the Proteas in January.
Read more »
‘Up to 1-million at risk of Covid-19 in SA in 40 days’Government needs to take drastic action to avoid the country reaching a tipping point of 100 locally acquired cases, according to a team of researchers at Wits university
Read more »
Maverick Citizen: OP-ED: SA faith communities and Covid-19: Between religious belief and political idiocyPoliticians, religious leaders and prominent figures in civil society must not play with fire in a situation of mass social unease.
Read more »