AIRLINE WOES: SA Airlink wants to sink SAA business rescue proceedings

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Privately-owned airlines are strongly against a final business rescue plan to restructure state-owned SAA and recapitalise it through taxpayer-funded bailouts. FlySafair is unhappy and SA Airlink has approached the High Court to urgently block a pending meeting with SAA creditors to approve the final business rescue plan, and to place the airline under provisional liquidation.

The ongoing restructuring of troubled SAA through a recently-published final business rescue plan is facing more opposition – this time from SA Airlink, a regional airline that is privately owned.

SA Airlink also wants SAA, or the rescue practitioners, to hand over copies of all minutes of board meetings and documents from the government that informed the decision to place the state-owned airline under business rescue. The final SAA rescue plan was published after many delays. The plan was supposed to be published on 28 February 2020 after an initial extension. Subsequent deadlines were 31 March, 29 May, and 8 June.

In the second part of SA Airlink’s court application, it wants SAA to be placed under provisional liquidation, which would immediately terminate business rescue proceedings. Dongwana and Matuson said they would oppose the SA Airlink application. The Department of Public Enterprises said it would approach the court to intervene in the matter and also oppose the application.

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