SAA to be restructured into a new airline

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The South African government has announced that it will be restructuring the former state-owned flag carrier airline, South African Airways (SAA) into a new airline.

The South African Department of Public Enterprises (DPE) stated that the old airline in its present form and structure will pave way for the new airline on the cards, bringing in prospective strategic partners whilst the government will continue playing a key role in the new airline.

“With the correct vision, leadership, business and operating model, funding and implementation of the new national carrier will be well positioned,” said the Acting DG of the DPE, Kgathatso Tlhakudi.

Tlhakudi added that it was the least of their worries whether or not they would be able to raise funding as there had been a number of approaches from a number of entities that want to be part of the new airline meaning that private capital would be coming in.

The DPE further said there was an international aviation company that was consulting with the department for the new airline and is currently at work drafting the new plan for the new carrier.

Meanwhile, the National Union of Metal Workers of South Africa (NUMSA) and the South African Civil Aviation Authority (SACCA) are still going ahead with its urgent court application to the Labor Appeals Court.

The two bodies are claiming that even though the DPE says a new airline is emerging, it is not stopping the Business Rescue Practitioners from retrenchments.

They have asked for the matter to be heard next week.

#NewSAA

They will advise on what the new form will take and which routes will be best for the start of the airline.

Minister Gordhan has given the BRPs demanding timelines for the developing the business Rescue Practitioners plan and parameters in order to determine what path the new #SAA could follow.

Unions and the department are working together in a business model that deals with what a new national carrier of the future will be but also how the airline can be competitive in sectors which SAA competes. #NewSAA

Heidi Giokos

@HeidiGiokos

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15h

 (Gov not ruling out funding some of new SAA) #NewSAA

 DPE says it will not be the old #SAA but the beginning of a new journey to a new restructured airline.

DPE speaks to strategic equity partners coming in and the sale of non-core assets with the state still playing a role.

Heidi Giokos

@HeidiGiokos

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1h

Speaking on eNCA, SACCA says they have been requesting for certain paperwork from the BRPs at SAA and they’ve never received anything. This is why they took the BRPs to court in Feb to stop retrenchments. They want the plan to show why and how they going to retrench.

Heidi Giokos

@HeidiGiokos

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1h

SACCA says their application to the LAC is not futile as they still want the BRPs to stop the section 189. The unions want a plan from the BRPs which hasn’t been submitted in the 5 months the airline went into business rescue

#NewSAA

10:43 AM · May 2, 2020·Twitter for iPhone

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Heidi Giokos

@HeidiGiokos

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9m

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Heidi Giokos

@HeidiGiokos

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Acting DG of DPE says the BRPs have cost more than the  international consulting aviation company has.

BRPs have promised to provide some kind of plan to the department for #SAA by next week some time.

Heidi Giokos

@HeidiGiokos

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5m

Department says some plan should’ve come in the last 5 months of appointing the BRPs for #SAA

DPE says there hasn’t even been a draft plan. He says there is contradiction from BRPs wanting to liquidate/ retrench entire workforce with no plan, not even a draft plan.

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