South African Airways Bailout Plans Approved

Posted by Lanre Aerodove on July 15, 2020 in Airlines Business COVID-19 News | Comments : 0

After six months of turbulent negotiations, South African Airways has been rescued from sinking as the business rescue plan of the airline was given the nod by 86 percent of its creditors on Tuesday, July 14.

SAA creditors approved a rescue plan for the struggling airline yesterday that requires at least 10 billion rands ($596 million) in new funding, throwing the ball into the government’s court to come up with the cash.

The State-owned SAA, which last made a profit in 2011, entered bankruptcy protection in December and suspended commercial passenger flights in March when the government imposed one of the world’s strictest lockdowns to contain the spread of COVID-19 virus.

The company will see an additional 1,000 employees retained on a year-old training scheme as part of its amendments.

Administrator Siviwe Dongwana told a creditor meeting the plan had been approved by 86% of voting interests.
“It is an important step forward for the airline and provides much-needed certainty towards a restructured SAA,” he added in a statement.