Public Enterprises urges SAA employees and creditors to be patient

It was reported on Thursday that administrators of the airline called creditors to Friday’s meeting after the government missed the deadline to make funding available for the airline’s restructuring plan.

The Department of Public Enterprises (DPE) has called on South African Airways (SAA) employees and creditors to be patient while work continues to find a constructive outcome to challenges at the airline.

"The department is aware of a creditors meeting called to discuss the future of the business rescue plan for South African Airways and protests scheduled to be held outside the airline's offices on Friday. Efforts to locate funding sources continue. The DPE remains sympathetic and deeply mindful of the plight of SAA employees," the department said.

In charting a way forward, the DPE believes critical to solving the difficulties facing SAA is:

the finalisation and implementation of the business rescue process, followed by the start of a restructured airline, appointment of a new board and executive team,

and securing a credible strategic equity partner who can introduce the required technical, financial, and operational expertise into the business.

In a statement on Thursday, the department said the government is working with transaction advisors to assess proposals from several potential strategic equity partners for the airline.

"The department recognises the interests of workers' and creditors."

It was reported on Thursday that administrators of the airline called creditors to Friday's meeting after the government missed the deadline to make funding available for the airline's restructuring plan.

SAA was placed under business rescue in December 2019.

(With Inputs from South African Government Press Release)