SAA is gunning for its pilots who have a deal that the airline cannot make a number of operational and strategic commercial decisions without their agreement.
SAA’s business rescue practitioners (BRPs) Siviwe Dongwana and Les Matuson warned that the airline that will emerge from the national carrier’s ruins will not succeed if the so-called regulating agreement with pilots remains in place.
”It is for this reason the BRPs believe a restructured airline can only be successful should it not be encumbered by the onerous provisions of the regulating agreement,” Dongwana and Matuson cautioned on Friday.
SAA instituted litigation against the pilots to set aside the regulating agreement, signed in the 1990s, before the start of the business rescue process.
The airline’s lawsuit was suspended after it was placed under business rescue in December 2019 but the suspension was lifted in November last year.
SAA pilots argue that the matter cannot proceed in court while the airline is under business rescue.
According to Dongwana and Matuson, SAA is also embroiled in a number of other legal disputes including theft of over R13 million by its employees in Namibia.
SAA accused the employees of stealing from the airline in a fraudulent scheme relating to baggage claims.
Only R1.5m has been recovered so far after the implicated employees and their beneficiaries had their pension fund benefits appropriated by SAA.
Dongwana and Matuson confirmed that SAA was likely to move out of business rescue after declaring there was substantial implementation of the plan to save the airline.
SAA was placed under business rescue in December 2019.
POLITICAL BUREAU