Investors interested in new SAA, govt says
The Department of Public Enterprise (DPE) says it has received several proposals from potential investors interested in the new, restructured South African Airways (SAA).
The state entity was placed under business rescue in December 2019 due to its dire financial state.
Since, practitioners have suggested a restructuring plan to save the cash-strapped airline that could potentially cost government R10 billion.
The department’s spokesperson Sam Mkokeli says COVID-19 and the national lockdown also added significant pressure on the entity.
“Government is intent on pursuing credible proposals for investment and strategic partnerships with the private sector, as well as equity participation for employees.
READ: NUMSA says SAA ignored red flags
“Government has expressed its intent and commitment to fundamentally restructure and transform SAA into a viable, sustainable and competitive national carrier.”
The implementation of the business rescue plan is expected to assist in preserve 1 000 jobs.
“There are possibilities for airline partnerships to improve scale and scope and ensure continuity of value creation to the South African economy and long-term sustainability of the aviation industry,” Mkokeli says.
