More turbulence for troubled SAA

THE future of the cash-strapped SAA hangs in the balance as it battles to secure funds for its continued operations and financial survival.

The heavily indebted national carrier is currently tasked with the ferrying of essential cargo, including medical supplies, from around the world and the repatriation of stranded South Africans in different countries during the current national lockdown.

Its appeal for R10 billion was rejected, with Public Enterprises Minister Pravin Gordhan indicating that the government had no money to assist the airline, which is currently under business rescue.

The rejection would also set in motion retrenchment plans which were put in abeyance by business rescue practitioners Les Matuson and Siviwe Dongwana and which have been strongly opposed by the union organising in the aviation sector.

Yesterday, Numsa general secretary Irvin Jim said the union was yet to respond to the decision by the government to decline SAA’s request.

Unions have been vocal in calling for the government to provide financial assistance to the airline to avoid job losses and possible liquidation.

SA Cabin Crew Association president Zazi Nsibanyoni-Anyiam said the union’s leadership were scheduled to meet yesterday to discuss the SAA crisis. “We are still going to caucus about what our firm position is,” Nsibanyoni-Anyiam said.

In the letter to the business rescue practitioners on Friday, Gordhan pointed out that beyond the R3.5bn it had already provided, the government would not be granting any form of financial support to the airline to sustain the business rescue process.

“Please note that neither will lending guarantees be provided in respect of the business rescue process. The advent of the Covid-19 pandemic has further stretched resources in the government’s effort to mitigate the impact on the health of our people and on economic activity,” Gordhan said.

He added that the pandemic had devastated the airline industry worldwide and that they had to consider options with resources that were currently available.

Aviation economist Joachim Vermooten said the government had to fund SAA together with other private airlines that were set to experience operational challenges as a result of their grounding in the past month.

The business rescue practitioners could not be reached by the time of publication.