Public Enterprises on South African Airways Business Rescue process

7 February 2020

The Ministry of Public Enterprises is concerned that recent decisions concerning South African Airways SOC Ltd, have caused market and customer uncertainty that may jeopardise the long-term future of the airline. Government will be making representations to the Business Rescue Practitioners in order to balance the necessity for trimming unprofitable routes with the need to ensure the future sustainability of both the airline and South Africa’s aviation industry. This will necessitate a review of the BRP’ recent announcement. Our submission will include, a proposal that the route network changes announced by the BRP be reviewed to ensure the sustainability of the airline. Whilst understanding the impact of the Business Rescue process on the restructuring of routes, staffing and costs, the Government and Business Rescue Practitioners are both committed to a viable SAA as an outcome of this process.

The South African Government had already communicated to the Business Rescue Practitioners that the rescue plan to be developed by the BRP should result in a restructured SAA, a national carrier which is sustainable and viable in the future.

Issued by Sam Mkokeli on behalf of Department of Public Enterprises, 7 February 2020