Johannesburg - South African Airways (SAA)
could have to suspend some flights and delay salary payments if
the government can't come up with a plan soon to provide the 2
billion rand ($139 million) it promised the airline last month,
a trade union official said on Wednesday.
State-owned SAA entered a form of bankruptcy protection last
month in an effort to rescue the company and 10,000 related
jobs. At the time it was promised 2 billion rand from the
government and 2 billion rand from lenders.
But unions briefed by the specialists appointed to turn
around the carrier were told on Wednesday that the government
had not yet been able to provide its portion of the funds and
that the 2 billion rand from lenders had been exhausted,
National Transport Movement president Mashudu Raphetha told
Reuters.
Unions were told SAA's business rescue practitioners needed
clarity from government on the 2 billion rand of promised
funding by the end of Jan. 19, Raphetha said.
Les Matuson and Siviwe Dongwana, the business rescue
practitioners, said in a statement: "We remain hopeful that a
mechanism can be found to unlock the liquidity constraints."
"Government continues to indicate its support for the
business rescue process and together we are considering various
scenarios to keep the entity operational. ... The liquidation of
SAA is not one such current scenario," the statement added.
A public enterprises ministry spokesman was not immediately
available for comment.
In a statement on December 20, Matuson and Dongwana said there
was a "reasonable prospect" of rescuing SAA.
SAA is one of several state companies mired in financial
crisis after nearly a decade of mismanagement and corruption in
Africa's most industrialised economy.
The national carrier's case is seen as a test of President
Cyril Ramaphosa's resolve to carry out badly-needed reforms.
Reuters