Following several years of loss making and struggles to profitably stay in business, South African Airways (SAA) has officially entered into business rescue.
According to its board, the airline was placed into business rescue in order to create a better return for the company’s creditors and shareholders.
Before now, the SAA Board of Directors and the Executive Committee had been in consultations with the shareholder, the Department of Public Enterprises (DPE), in an effort to find a solution to our company’s well-documented financial challenges.
The company says it is seeking to minimize the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.
In a statement, the airline said that this decision presents many challenges and uncertainties for its staff and will engage in targeted communication and support for all employee groups at this difficult time.
The Board of Directors will announce the appointment of business practitioners in the near future, and provide media updates as and when appropriate.
However, services operated by SAA’s subsidiary airline, Mango, will continue as usual and as scheduled, according to the airline.