Public Enterprises on SAA Business Rescue Plan

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The Public Enterprises Department has confirmed that it has received a draft Business Rescue Plan for South African Airways (SAA) SOC Ltd, which is under business rescue.

Government has not discussed the plan yet and no decisions have been taken on some of the proposals it contains.

The draft Plan has been prepared by the Business Rescue Practitioners and is meant to be discussed by various stakeholders including creditors, employees, and Government.

President Cyril Ramaphosa on Sunday told members of the South African National Editors’ Forum that he saw a good future for the airline, which enjoys support right across the continent. The aviation industry plays a pivotal role in the battle against the Corona virus as Johannesburg could be a hub to distribute Covid-19 medical supplies.

A viable aviation industry would also anchor many efforts to revive the economy and create jobs, the department said.

According to a statment, the government has embraced the restructuring process as part of a path to a new, dynamic and financially viable airline that will serve South Africa’s economic and strategic interests.

The department said it will review the Plan, explore various funding options, and communicate our decisions in due course.

The impact of COVID-19 on the travel industry is unprecedented and unpredictable. The nature of the content that is being shared on the ASATA coronavirus microsite is therefore constantly changing. Please check the date of the post to ascertain its recency.
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