Government ready to bring in strategic partners for sale of SAA’s non-core assets

Public Enterprises Department Acting Director-General Kgathatso Tlhakudi says government is ready to bring in strategic partners for the sale of South African Airways’s (SAA) non-core assets. He says government plans to establish an airline that is a catalyst for investment, job creation in key sectors, economic growth throughout all regions of the country.

Thlakudi says despite the current delays, they expect the transition from SAA to the new airline to take place soon.

“South Africa is an end of the world destination, her connections are critical for the tourism industry and for investment. The continent has long distances between its economic hubs and this makes air routes for regional integration important. It is for this reason that a capable national carrier is non-negotiable.”

In the video below, unions head to court over the looming retrenchments at SAA:

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Tlhakudi’s statement comes after the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (SACCA) approached the High Court in Johannesburg on Friday to try and block retrenchments at SAA.

The unions say business rescue practitioners Les Matuson and Siviwe Dongwana proposed severance packages in April for SAA’s entire roughly 5 000-strong workforce after the government said it would not provide any more funds.

Numsa slammed the tactics the practitioners were using to get workers to sign the agreement as unlawful.

In the video below, the SABC News and guests discuss whether this is the end of the rod for SAA:

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The South African Airways has been in a free fall for years now.

Below is an infographic tacking the airline’s SAA woes: