Left Menu
Development News Edition

UPDATE 1-S.Africa president says SAA must enter business rescue - sources

UPDATE 1-S.Africa president says SAA must enter business rescue - sources
Image Credit: Twitter(@PresidencyZA)

South Africa's President Cyril Ramaphosa on Wednesday instructed the government to urgently put its failing state-owned national airline SAA into business rescue, a deputy minister told Reuters.

SAA, which has not made a profit since 2011 and is dependent on government bailouts to remain solvent, suffered a crippling strike last month forced SAA to cancel hundreds of flights and pushed it to the brink of collapse. A deputy minister, who asked not to be named because of the sensitivity of the subject, told Reuters he had received the letter from the secretary of the cabinet earlier on Wednesday.

State broadcaster SABC also reported that SAA would have to go into rescue, citing a leaked memo. Ramaphosa's spokeswoman Khusela Diko did not immediately respond to a request for comment. But she was cited by Times Live online news service saying that the letter was official correspondence to members of the cabinet and deputy ministers.

SAA spokesman Tlali Tlali could not be reached for comment and public enterprises ministry spokesman Sam Mkokeli declined to comment. SAA lost more than 10.4 billion rands ($700 million) in the past two financial years, documents show.

Business rescue would hand over control to a specialized prac­ti­tioner who then tries to restore the com­pany in order to avoid liquidation, usually by making substantial cost cuts.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...


Latest News

Survivor says he could escape as he was sleeping near the door, others were not so lucky

On Sunday morning, 32-year-old Firoz Khan woke up to flames engulfing the room where he was sleeping along with his fellow workers in a building in Anaj Mandi. Khan, who is among the survivors of the deadly blaze which killed 43 persons, sa...

Anaj Mandi blaze one of the worst fire tragedies that hit Delhi

The Anaj Mandi inferno that killed at least 43 people on Sunday morning is the most severe fire in the national capital after the Uphaar Cinema tragedy that claimed 59 lives and left over 100 injured. The theatre in the posh Green Park area...

Kerala: Security withdrawn as I opined against govt, says retired HC judge Pasha

Justice B Kemal Pasha, a retired High Court judge, on Sunday said that the Kerala government has withdrawn his security cover because he had expressed his opinion against the government and the police.It was unforeseen. The government might...

Minister: Brazil can't stop deforestation without help

Brazil cant stop deforestation in the Amazon without the help of rich countries, the countrys environment minister said at the United Nations two-week climate change conference. Ricardo Salles, who declined to set a target for limiting defo...

Give Feedback