SAA Suspends All Operations With Immediate Effect

It never rains but pours heavily for the controversial airline, South African Airways (SAA). In the new twist of events, the South African Airways Business Rescue Practitioners (BRP’s), has decided to suspend all airline operations effective immediately.

However, an outcome to the funding issues is still being internally discussed, as there are funders who are willing to chime in and rescue the airline from its doldrums, whilst counting on the government to cover the remaining amount needed.

“There has been certain progress throughout the previous week in relation to the securing of funding for the implementation of the Business Rescue Plan, subject to certain terms and conditions,” said BRP.

The financially ailing airline’s several issues were escalated by the scourge of the corona virus pandemic. In June 2020, the administrators of SAA drafted a restructuring strategy for the airline, although the government has pledged its support of the proposed strategy, the airline reportedly needs a financial rescue injection of 10 billion rands.

In a notice by the SAA admins, it reads as follows: ”The BRPs (administrators) have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed.”