SAA informs Solidarity that it would seek a strategic partner without delay
SAA Group CEO, Vuyana Jarana, has given a written undertaking to Solidarity to immediately initiate a process to procure a strategic partner. This comes after Solidarity announced plans earlier this year to embark on a process to have SAA placed under business rescue and to do so for the sake of taxpayers across the country.
This position is in stark contrast with SAA’s previous stance that the airline first needed to be turned around before a strategic partner could be procured.
“In view of the SAA’s letter in which comprehensive undertakings are given, Solidarity has decided to suspend its application for business rescue for the time being. It is difficult to immediately proceed with litigation if the other party has conceded in writing to most of our demands,” Solidarity Chief Executive Dirk Hermann said.
This written undertaking comes after talks between Solidarity and SAA about the trade union’s business rescue application.
Jarana confirms in the letter that the South African government announced that the private sector must participate in SAA’s ownership management. Jarana further writes that the shareholder, the SAA board and management agreed to, in view of the pressure to fund SAA, immediately proceed with the process.