SA Express under business rescue
JOHANNESBURG - South African state airline SA Express is under a form of bankruptcy protection known as business rescue, a spokeswoman for the airline said on Thursday.
SA Express is a separate business to embattled state carrier South African Airways (SAA), which entered business rescue in December.
“The business rescue process is well-coordinated with no disruptions to customers and employees,” SA Express said in a statement.
SA Express said in a statement, "Despite a plethora of well-known historical challenges, SA Express states that its Board and Executive team have made positive progress to ensure the long term sustainability of the airline. While the manner in which the introduction of the Business Rescue process occurred is unfortunate, this now provides the environment to facilitate the conclusion of initiatives that had already been initiated by the Board and Executive team. In just under 24 months, SA Express’ Board of Directors and Executive team worked tirelessly to rebuild operations and reinstate governance structures while implementing the airline’s robust turnaround strategy."
SA Express said that it continues to affirm its critical importance to South Africa’s developmental objectives through its expansive aviation value chain which impacts multiple industries.
"At route level, SA Express makes a positive contribution and is an invaluable strategic national asset whose mandate includes economic development and job creation that is desperately needed in the country. The Business Rescue process is well-coordinated with no disruptions to customers and employees. SA Express’ Board of Directors and Executive Committee will continue to protect this national asset by pursuing and laying charges against those embroiled in malfeasance, irregularities and contraventions of the Public Finance Management Act (PFMA)."
REUTERS / BUSINESS REPORT ONLINE