SAA says government’s exploring funding options

Unions now have until May 8 to agree to workers’ retrenchment deal.
Image: Shutterstock

South African Airways’ (SAA’s) administrators extended a deadline for workers to agree to severance packages after Minister for Public Enterprises Pravin Gordhan said he needs time to explore funding options for the bankrupt state-owned carrier.

The business-rescue team led by Les Matuson and Siviwe Dongwana are trying to persuade labour groups to sign off on retrenchment deals as a possible alternative to liquidation proceedings, which could see the near 5 000-strong workforce made unemployed without compensation. The plan is opposed by Gordhan, who wants to instead build a new airline.

Unions now have until May 8 to agree to the offer to workers, according to a letter signed by the administrators and seen by Bloomberg News. If they refuse, all employees – whether represented or not – may be given a further three days to make up their own minds.

The Department of Public Enterprises said Friday it wants to create a national carrier that’s both publicly and privately owned, profitable and able to serve South Africa’s trade connections. SAA’s entire fleet is currently grounded as governments around the world close borders to contain the Covid-19 pandemic.

© 2020 Bloomberg L.P.

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Pravin can start his own new airline, but must use his own money and the union’s funds. We have paid for SAA a few times over and don’t wish to fund a new airline (especially as all airline are going to have a huge battle to find new clients over the next 2 years). The tax payers and SARS now have many new problems to fund, and no budget to fund these more important issues. Enough is enough, let the company go into liquidation.

These politicians watch far too many hollywood sequels:

Superman returns, Batman returns, 007 Part 2, Spiderman returns

and now Zooma returns sitting on Squarely on Squirrels head and “ so wraggies waar”

SAA soon to return!!! directed by faction1 and edited by none

This is ludicrous and we the people merrily go along with all their decisions, even relinquishing legal tobacco for illegal twak so the Auntie can buy some nice African attire whilst we cough our lungs out with camel trash in the Camel “zol”

What is it with Mr.Gordhan? He must get his head out of the clouds and come back down to earth. NOBODY is going to go into partnership with the government, especially not with a airline type of business. Is Mr.Gordhan looking for jobs for his cronies at SAA?

Gordon and his tenderprenuers are crazy we don’t want another state airline. How long these people want to milk us?

The gov can’t let SAA go into liquidation now….not until their only assets ( aircraft owned) are worth something again. This will take a very long time, if reports on the survival of the airline industry post CV19 is anything to go by.
So we sit with a useless asset for as long as it takes clocking up futher costs?
My advice – sell the assets as scrap metal and shut the operation down. You will be saving more money and “face” if you do this now. The virus is the perfect excuse to get rid of non performers!

For people who didn’t get around to inventing the wheel, starting an airline is as feasible as me winning a Nobel Prize for Physics

End of comments.

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