South African state airline SA has announced on Tuesday, that it has temporarily escaped liquidation, after a judge granted a three-month delay in liquidation proceedings, giving the government more time to clarify its plans for the domestic and regional carrier.
SA Express, a different business to national flag carrier South African Airways, was placed under provisional
liquidation in April after its administrators said they could not secure funding for turnaround efforts.
But lawyers for the airline’s administrators asked the High Court to delay a hearing on whether it should be finally liquidated, citing a letter from the state enterprises ministry that referred to an allocation of 164 million rand ($10 million) in the fiscal year that began in April, subject to certain conditions.
The lawyers said this was a sign that the “government is contemplating a form of restart for the operations of the airline” and that delaying the hearing would allow “national executives to roll out proper plans”.
The request to delay the hearing was supported by the provisional liquidators, who said they needed more time to study the airline’s affairs, as well as trade unions and creditors.
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