Another extension request for SAA rescue plan

South African Airways (SAA) business rescue practitioners (BRPs) have asked for another extension to publish their final rescue plan —  this time due to unions requesting more time to engage with the plan. 

The plan was supposed to be published on Monday, June 8 and should the extension be granted this will postpone the publication to June 15. 

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In a letter to creditors, Les Matuson and Siviwe Dongwana explain that since Thursday they have been consulting with all the affected parties about their contributions to the draft rescue plan.  

But discussions with the employee committee have not taken place.  The committee wants to discuss the draft plan in the Leadership Compact Forum (LCF) established by the Department of Public Enterprises as a platform where union leaders and senior government officials, including Minister Pravin Gordhan, can discuss the transition from the old SAA and the model for a new airline. 

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The National Union of Metalworkers of South Africa (Numsa), South African Cabin Crew Association (Sacca),  South African Airways Pilots’ Association (SAAPA) who represent the majority of workers at the airline have led the charge for the extension request pending the engagements in the LCF. 

Matuson and Dongwana said the rescue plan is ready for publication having incorporated submissions from the DPE as well as previous outcomes from the forum related to employees. 

“However, we thought that it would not be appropriate to continue with the publication of the business rescue plan without conveying the request of the unions that represent the majority of the SAA employees,” said the BRPs. 

The creditors have until close of business today to vote for or against the extension.