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The South African government is not just seeking strategic equity partners for South African Airways (SA, Johannesburg O.R. Tambo ) but for its subsidiaries as well, including Mango Airlines (JE, Johannesburg O.R. Tambo ), according to a Bloomberg report quoting Public Enterprises Minister Pravin Gordhan.
The result would be a number of private-sector entities working with various parts of SAA whenever it resumed operations, Gordhan said. The government so far had received 31 expressions of interest in SAA and was currently whittling down the list, he added. “At the moment we are not actually looking to raise a specific amount from the strategic-equity partners but rather (are considering) the viability of their proposals,” he said in a telephone phone interview. “We will only discuss numbers in January.”
SAA has been in business rescue for a year. In July, 86% of creditors approved a restructuring plan committing the government to mobilise the necessary funds. However, on September 29, the airline’s cash flow was depleted, forcing the administrators to mothball all operations. Of the carrier’s 4,547 employees, a…
The administrators of South African Airways (SA, Johannesburg O.R. Tambo ) have confirmed they have received ZAR1.5 billion (USD97.9 million) in state funding to execute the airline’s business rescue plan, but cannot disburse the funds because conditions stipulated by the government contravene South Africa’s Labour Relations and Companies Act.
This comes as disgruntled SAA employees picketed outside the airline’s Kempton Park head office on December 3 demanding to be paid. The members of the National Union of Metalworkers of South Africa (NUMSA) and the South Africa Cabin Crew Association (SACCA) said they had not been paid for eight months. “Monies were allocated to the airline last month to fund the business rescue plan and the restructuring of the airline by Treasury, but workers have still not been paid, and yet the business rescue practitioners (BRPs) earn millions in fees and they continue to be paid. It is December and holidays are around the corner, but workers have no idea where their next meal will come from,” NUMSA charged in a statement.
“ZAR1.5 billion was received from…
Kenya Airways (KQ, Nairobi Jomo Kenyatta ) has moved into a market gap left my stricken South African Airways (SA, Johannesburg O.R. Tambo ) by operating direct freighter services out of SAA’s hub in Johannesburg O.R. Tambo to Southern African destinations. Previously, all Kenya Airways traffic departing from Johannesburg […]