SAA Placed In Business Rescue As Government Throws A R2BN Lifeline

Riyaz Patel

The Public Enterprises Minister has confirmed that South African Airways (SAA) will be placed into business rescue immediately.

Pravin Gordhan said the the decision was taken by its board and supported by government.

The news follows the leaking of a letter on Wednesday evening from President Cyril Ramaphosa to Cabinet, stating that the national airline must enter voluntary business rescue. 

“This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets of SAA and help to restructure and reposition the entity into one that is stronger, more sustainable and able to grow and attract an equity partner,” said Gordhan. 

He said SAA’s reliance of government finances must be reduced as soon as possible.

But, he added, government will give SAA an additional R2 billion, “a fiscally neutral manner” to help keep the airline operational.

“It must be