SAA operations suspended as search for funding continues
The business rescue practioners at South African Airways (SAA) have opted to suspend all the airline’s operations with immediate effect.
In a statement released on Tuesday, the BRPs said they are pursuing a process to put the airline under care and maintenance until funding discussions with government are completed.
This comes more than a week after government committed to R10.5 billion in funding to restructure the embattled airline.
“There has been certain progress throughout the previous week in relation to the securing of funding for the implementation of the Business Rescue Plan, subject to certain terms and conditions.
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"The BRPs and Government have engaged with certain funders that have indicated a willingness to provide a portion of the funding required for the implementation of the Business Rescue Plan," the statement reads.
SAA will complete repatriation flights already scheduled but will not schedule any further flights.
“In the same meeting the BRPs indicated that they needed time to assess and determine the appropriate way to proceed in the absence of funding, between the sale of the business and/or assets of the company and its liquidation. The BRPs will be able to make that determination and conclude those details in the following week.
“In the interim, the BRPs have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed.”
The BRPs hope to conclude the consultations by next week.
The decision comes just before South Africa’s borders are opened again for international travel.
