Solidarity wants to place SAA under business rescue

6 months ago written by

The financial models of South African Aircraze (SAA) are unsustainable and ineffective and the national carrier should be forced, by law, to be placed under business rescue to be managed by duly qualified people.

Trade Union solidarity announced it has already started a process to initiate a court process to place SAA under business rescue. In a letter to President Cyril Ramaphosa and Ministers Nhlanhla Nene and Pravin Gordhan, Solidarity expressed these concerns that the airline’s management is not up to the job at hand. The president and said ministers have confirmed receipt of this letter.

According to Werner Human, Deputy Chief Executive at Solidarity, the Auditor General stated in his recent report that a substantial uncertainty exists as to whether SAA will be able to continue as a going concern, while President Ramaphosa and Ministers Nene and Gordhan expressed some harsh words about the struggling airline and undertook to turn the airline around. “At present, there is no other choice but to privatise SAA, at least in part,” said Human.

“Solidarity invites the President and Ministers to support its application to place SAA under business rescue, and will reveal its legal strategy regarding this process on this coming Thursday, 12 April, during a press conference,” confirmed Human.

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