Government puts troubled SAA on business rescue
Government 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. This is the only viable route open to the government to avoid an uncontrolled implosion of the national airline.
"The voluntary business rescue approach will also prevent liquidation application by any of SAA's creditors, which would land the airline in an even worse positions," he said.
Explaining how the decision was taken, he said: "His excellency President Cyril Ramaphosa has directed me to inform all members of the executive of the urgent need to change the approach adopted by the cabinet in regard to addressing the dire situation in which SAA finds itself.
"Cabinet adopted an approach that entailed the restructuring of SAA. However, after discussions with various key stakeholders including potential lenders, developments have now necessitated a change of approach to the SAA conundrum.
"We remain seized with the SAA crisis and will keep members of the executive informed at all material times," said Lubisi.