Unions and staff representatives have agreed to severance packages for about 2 700 employees who will lose their jobs.
South African Airways’ creditors have approved the state airline’s business rescue plan, bringing to an end a long seven-month process. told the meeting of creditors on Tuesday that 86% of them had voted in favour of the plan, which will see the airline dissolved to make way for a new airline.requires more than 75% of creditors to approve a business rescue plan; failing to get this go-ahead would have led to the airline being liquidated.
The rescue plan achieves the recovery projections over the next three years. Trade creditors will be paid 7.5c for each rand they are owed, over the same period. The R10.4-billion is to be used for the payment of operations, severance packages, aircraft lease cancellations, paying off SAA’s debt after it was placed under business rescue in December and reimbursing SAA ticket holders for forward booked flights.
“The restructuring that is being proposed for SAA is fundamental and will create a solid base for the emergence of a competitive, viable and sustainable national airline,” he told the creditors.
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