Public Enterprises Minister Pravin Gordhan is set to announce tonight that the South African Airways board has resolved to place the ailing state carrier under business rescue.
Lubisi explains that SAA will now have to go into voluntary business rescue. “This is the only viable route open to the government to avoid an uncontrolled implosion of the national airline.” The announcement also comes after a press statement, delivered on Sunday night by SAA’s shareholder representative Gordhan, that the airline could no longer continue in its current form and that it would go through a “radical restructuring process”.
Last Thursday night, after an SAA board meeting, speculation was rife that the airline would announce closure. This was strengthened by SAA chairperson Thandeka Mgoduso informing employees that they should be on standby. Myeni, who chaired SAA’s board since late 2012, is commonly regarded as responsible for much of the mess the airline is in. She also allegedly used her considerable political influence, including inviting board members to the president’s residence for a meeting, to push through her agenda, which hasn’t always been in SAA’s interests.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Government puts troubled SAA on business rescueGovernment has placed the embattled SAA on business rescue. In a media statement sent out on Wednesday, Cassius Lubisi, the secretariat of the cabinet, said SAA was placed on voluntary business rescue to prevent the cash-strapped airline from imploding. 'In this regard, SAA will have to urgently go into voluntary business rescue.
Source: SowetanLIVE - 🏆 13. / 63 Read more »