SAA Business Rescue Plan Cleared For Take-Off

SAA Business Rescue Plan Cleared For Take-Off

Creditor of South African Airways on Tuesday 14 July 2020 completed an 86% vote in favour of the creation of a new national carrier.

Phillip Saunders who is currently Chief Commercial Officer of the current South African Airways has been appointed as the interim Chief Executive Officer of the airline. The Department of Public Enterprise called Saunders an experienced airline executive with a strong commercial background and will work closely with the interim board to appoint an interim management team that must implement a fundamental restructuring of SAA.

Siviwe Dongwana, South African Airways Business Rescue Practitioner said the government had indicated its full support to fund the plan and indicated it would provide a written confirmation 15 July 2020.

Public Enterprises spokesperson Sam Mkokli said in statement: “The government is committed to mobilising the necessary resources to fund the transition”, which included the voluntary severance packages agreed with the unions, as well as meeting the minimum requirements of the labour laws.”

He added: “The department hopes that a new SAA can reclaim the market share while fighting to compete more in the emerging market space.” The new airline will retain 1000 workers from the current SAA while another 1000 workers will be placed on a training lay-off scheme for 12 months.

#SAA #SouthAfricanAirways #JustAfricanAviation

Copyright 2020 Just African Aviation Pty Ltd, Permission to use quotations from this article is granted subject to appropriate credit being given to as the source.

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