The government wants to interfere with business rescue practitioners over SAA

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The president and department of public enterprises are not happy with the decision by the business rescue practitioners to cut certain routes

The president and department of public enterprises are unhappy with the decision by the business rescue practitioners to cut certain routesThe government is not happy with the decision by SAA’s business rescue practitioners to cancel some local and regional flights, and may attempt to force their hand on the matter.

The department believes the move to cancel the routes will cause market and customer uncertainty that may jeopardise the long-term future of the airline, it said. “This will necessitate a review of the business rescue practitioners’ recent announcement. Our submission will include a proposal that the route network changes announced by the business rescue practitioners be reviewed to ensure the sustainability of the airline.

"The SA government had already communicated to the business rescue practitioners that the rescue plan to be developed by the business rescue practitioners should result in a restructured SAA, a national carrier which is sustainable and viable in the future,” said the statement. “We are not in agreement with what the business rescue practitioners have come up with ... that those domestic flights should be cancelled,” said Ramaphosa. “We want to find out what the rationale is. We want to have a discussion with them because SAA is not only a great symbol for the country but also an economic enabler.”

 

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