Mon. Jul 13th, 2020

iAfrica

Stay Smart About South Africa

Business Rescue Practitioners Urged To Intensify Efforts To Ease SAA’s Cash Woes

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The National Union of Metalworkers of South Africa (Numsa) and South Africa Cabin Crew Association (Sacca) have called on business rescue practitioners at the South African Airways (SAA) to intensify efforts to ease the financial burden on the airline.

The national carrier has scored a R3.5 billion cash injection from the Development Bank of Southern Africa aimed at helping with operations and improving productivity.

SAA entered a form of bankruptcy protection in December and business rescue practitioners were roped in to try to save the airline.

Numsa spokesperson Phakamile Hlubi-Majola said they wanted a viable and sustainable SAA: “The airline is under business rescue in part because it spent R25 billion on procurement per year. Some of these are evergreen contracts with grossly inflating pricing and there were no interventions on the contracts, which were choking the airline.”

EWN

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