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· The Pravin Gordhan-led Department of Public Enterprises is against the South African Airways management, creditors and unions from making any decisions that could lead to the winding down of the national carrier and disposing of its assets
· Now the voting is scheduled for July 14. Once voted in favor, the flag carrier could eventually be liquidated.
· This would cause financial hardship for the over 5 000 employees and undervaluation of assets, a statement from the department said, adding that it believed business rescue was a viable alternative to liquidation.
The Pravin Gordhan-led Department of Public Enterprises is against the South African Airways management, creditors and unions from making any decisions that could lead to the winding down of the national carrier and disposing of its assets.
SAA went into business rescue in December last year. This was triggered by years of losses and repeated state bailouts. Its business rescue plan is still in a limbo and was to be put to vote by stakeholders. The stakeholders voted to postpone on account of the pressure exerted by some stakeholders including the trade unions.
Now the voting is scheduled for July 14. Once voted in favor, the flag carrier could eventually be liquidated. This would cause financial hardship for the over 5 000 employees and undervaluation of assets, a statement from the department said, adding that it believed business rescue was a viable alternative to liquidation. Business rescue would preserve jobs and bring the airline back from the brink to a position where some staff and creditors could continue to contribute to the South African economy and its integration into the global economy. The unions maintain that the business rescue practitioners failed to consult employees on the development of the plan, and demanded that they develop a better one for employees.
