Union cooperation is crucial in SAA business rescue plan

Public Enterprises Minister Pravin Gordhan says the cooperation of unions at South African Airways (SAA) would play a crucial role in the formation of a new airline, which is still  work in progress.

After two years of refusing to disclose their financials, SAA’s financial statements for 2018 and 2019 were finally tabled before Parliament’s Standing Committee on Public Accounts (SCOPA).

The embattled airline lost a total of R5.5-billion in 2018 and R5.1-billion in 2019.

Finally DRAFT SAA financial statements for 2018 & 2019 were tabled at SCOPA this evening. Losses of R5,5bil in 2018 & R5,1bil in 2019! pic.twitter.com/iXDv8DxJLg

— Alf Lees (@SquireLees) May 14, 2020

Gordhan briefed SCOPA on developments relating to SAA and SA Express on Friday.

In the video below, Public Enterprises Minister Pravin Gordhan says there is a number of options other than winding down SAA: 

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Other options

Gordhan has insisted that the Business Rescue Practitioners (BRP) at SAA provide government with a number of options other than the winding down of the national carrier.

The BRP’s Siviwe Dongwana and Les Matuson have until the end of this month to publish a business rescue plan for SAA

Gordhan says liquidation is not an option.

“Mr Dongwana still says to you as a committee that despite what the act says about their responsibilities that the business rescue plan will be done for a wind down, I think that’s shocking. We will not accept liquidation as an option and it is their responsibility with the money that has been spent to emerge with a credible plan that presents us with options and the outcome must be a viable business that is fair to creditors, fair to employees, and fair to the public.”

In the video below, SAA under the spotlight: 

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