10 AUGUST 2020
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A much-vaunted plan to rescue South African Airways (SAA) is in in danger of collapsing according to Bloomberg.
SAA has not made money since 2011 surviving on government bailouts – a situation Finance Minister Tito Mboweni has said is unsustainable. He has undertaken to try and “mobilise” finance needed by the airline to keep flying from private equity, pension funds or “strategic partners.”
B4SA, a grouping of the country’s biggest business organisations, said that with the economy in crisis banks have other priorities and should not fund the carrier.
“We don’t have the money as a country,” said Martin Kingston, Chairman of the Steering Committee for the group and a former SAA Board Member. “The last thing on our list is for state-enterprise that is not essential to receive support.”
Mango Airlines, a low-cost subsidiary of SAA appears to be flying with a reduced schedule. SAA international flights stopped at the end of March.
There is currently no indication from the rescue practitioners or government that the funding to implement SAA's rescue plan has been "mobilised". In a retrenchment notice to SAA employees, the practitioners warn that if there is not a change at SAA soon, there is a real risk of liquidation.
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No one has commented yet, why don't you start the ball rolling?