Public Enterprises opposes SA Airlink court application against SAA Business Rescue Plan

Government to oppose court application against SAA Business Rescue Plan

The Department of Public Enterprises (DPE) was notified of a court application by SA Airlink aimed at interdicting the Business Rescue Practitioners (BRPs) from convening a Creditors meeting to vote on a business rescue plan for South African Airways (SAA).

The application by SA Airlink also seeks to have SAA placed under provisional liquidation.

The Department is also aware of plans by the National Union of Metalworkers of South Africa (NUMSA) and the South African Airways Cabin Crew Association (SACCA) to interdict the Creditor’s meeting through the courts.

The DPE has not been cited as a respondent in the SA Airlink application. However, as the Shareholder representative, the DPE will approach the court seeking to intervene with the intention to oppose the application by SA Airlink. The DPE will also oppose SA Airlink’s application that SAA be placed under provisional liquidation. SA Airlink contends that there is no reasonable prospect of rescuing SAA.

As we approach the final week to either endorse or reject the business rescue plan by the BRPs, it is disturbing that a competitor of SAA, which is 100% privately owned, as well as two labour unions, who should be acting in the best interest of their members, are seeking to destroy SAA by forcing a liquidation through the courts. The question is why? Is this really in the interest of SAA workers or the fiscus?

The BRPs have scheduled a creditors meeting for 25 June 2020 to vote on the business rescue plan. Should NUMSA and SACCA launch an application to stop the creditors meeting, DPE will oppose the application.

Government, as the sole shareholder of SAA, supports the business rescue plan where it results in a viable, sustainable, competitive airline that provides integrated domestic, regional and international flight services.

Enquiries:
Sam Mkokeli
Cell: 082 084 2051

Share this page

Similar categories to explore