SAA exits business rescue

After SAA went into business rescue late last year, many routes were suspended. Photo: Gallo Images/Getty Images
After SAA went into business rescue late last year, many routes were suspended. Photo: Gallo Images/Getty Images


On Friday, struggling national airline SAA exited business rescue after roughly 17 months of turmoil and uncertainty.

SAA was placed under administration in December 2019, and its long-standing financial woes worsened during the Covid-19 pandemic.

All operations were mothballed in September.

Its administrators said that they had filed a notice of “substantial implementation” of a business rescue plan with South Africa’s Companies and Intellectual Property Commission.

That meant they had “effectively discharged the business rescue and handed over the operations of SAA back to its board and executive team”.

They added that SAA was now solvent.

The airline is one of a handful of state companies that depend on government bailouts, placing the budget under huge strain at a time of rapidly rising debt.

The department of public enterprises, which is responsible for SAA, said government was in the final stages of negotiations with a preferred equity partner for SAA.

“A purchase and sale agreement should be concluded in the next few weeks. This will enable capital and much-needed technical and commercial expertise to be brought in to ensure a competitive flag carrier emerges,” it said.

Neither the administrators nor the department said when SAA might resume flights. Reuters

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24


Read the digital editions of City Press here.
Read now
Voting Booth
ANC secretary-general Ace Magashule has written a letter suspending party president Cyril Ramaphosa in apparent retaliation after he was served with a letter of suspension on Wednesday.
Please select an option Oops! Something went wrong, please try again later.
He doesn't have the power
34% - 98 votes
It’s a declaration of war
24% - 69 votes
Nothing but a distraction
42% - 119 votes