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The public companies department said the new airline will not be the old SAA, which has had endless financial problems, but a restructured airline that South Africans can be proud of.
JOHANNESBURG – The government said it will start a new airline to replace South African Airways (SAA).
The public companies department said the new airline will not be the old SAA, but a restructured airline that South Africans can be proud of.
The move comes when SAA’s business rescue professionals moved to eliminate SAA’s entire workforce because the airline is bankrupt.
It is the end of an era for SAA, which has been on the air for 86 years.
The airline has been depending on government bailouts until it was put under management last year due to financial problems.
Last month, corporate rescue professionals asked for more money from the government, but were denied this.
Leading them to say that they have no choice but to fire all SAA employees and sell their assets to pay off their debt.
But it appears that the government and unions have struck a deal for a new airline with a trade bailout plan that has yet to be agreed.
The public companies department said SAA employees will transition and new leadership and capital partners will be sought.
The government said this new airline will compete in a post-COVID-19 world.
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