Strike deteriorates SAA financial position

Thursday, November 28, 2019

The recent South African Airways strike has resulted in a sudden deterioration of the state-owned company’s financial position, the Public Enterprises Ministry has revealed.

The Ministry in a statement said it was now working with the SAA to urgently formulate immediate actions that will be required to provide support to enable the State Owned Enterprise to carry on its business.

However, SAA cannot continue “as is”, the Ministry said. 

Government efforts, under the direction of Public Enterprises Minister Pravin Gordhan, are focused on ensuring that the airline is stabilised in the short term and has the necessary support from all stakeholders.

They also seek to ensure that governance and leadership issues are being addressed, including the process of appointing an effective Management Team.

The efforts, added the Ministry, are to ensure that the airline returns to a stronger financial footing in the medium to longer term. 

“None of this can be achieved without the necessary contributions by all the key role players in the airline. The actions being undertaken by the Minister include involving relevant stakeholders so that they can participate in the support initiative,” the Ministry said.

Further details will be provided over the next week. -