Even if government gives bankrupt national carrier SAA the R2 billion it needs to pay salaries and stay in the air until December, it will probably not be enough to prevent the airline from being placed in business rescue
With the airline bleeding cash and unable to guarantee wages, business rescue seems to be the only option available
In fact, it could be the last decision that government, the public enterprises minister, SAA’s board of directors and its acting management make in respect of the beleaguered airline. In addition, Klopper said that government and SAA had limited grounds for opposing Solidarity’s application. SAA did not own its aeroplanes but leased them, and had few other assets to balance out its debt of R20 billion, he added.
Dirk Kotzé, a political science professor at the University of SA, said given the fact that SAA was not an essential entity, the government might be secretly relieved that somebody else was taking over the ailing airline.The business rescue practitioners must hold an initial meeting with SAA’s creditors within 10 days, subject to court approval, and then deliver an opinion on whether the airline can be saved.
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