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South African Airways’ maintenance subsidiary withdrew its services from its parent after the troubled airline failed to pay the money it owes, SAA spokesman Tlali Tlali told local news channel eNCA on Saturday.
Administrators took control of SAA in December after nearly a decade of financial losses and have been trying to keep it afloat as the coronavirus pandemic exacerbates its problems.
Tlali said that SAA Technical, a subsidiary of SAA that provides critical maintenance services, including required inspections before a flight can take off, said in a letter that it had made the decision after the national airline failed to pay for the services provided. .
“SAA Technical … as a self-registered company pursues its business interests,” Tlali said, adding that meetings will be held over the weekend to try to resolve the problem.
He added that while SAA was not operating commercial flights, it has been doing repatriation flights for South Africans who have been stranded abroad due to the coronavirus pandemic, as well as some charter flights that could be disrupted if SAA Technical does not restore its services. .
Another SAA subsidiary, Mango, is currently operating domestic commercial flights, which eNCA said would be suspended as of midnight Saturday due to SAA Technical’s decision.
Mango could not immediately be reached for comment.
SAA administrators published a rescue plan in June that requires more than 10 billion rand ($ 584.16 million) to function. The Department of Public Enterprises has said that it is in the process of finalizing the financing and that the airline will not be liquidated.
“As things stand, we are waiting for the (government) shareholder to give us an indication of when the funds will be available,” Tlali said, adding that financing was needed in the short term.
