African Airways News Updates 2020

43 Latest African Airways news updates.
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ANC gives green light to government's efforts to find equity partner for SAA

The ANC NEC has expressed its approval for the government to seek private funding for a new airline to replace South african airways.

jul 2 2020 9:08am
Mixed
ANC gives green light to government's efforts to find equity ...

The ANC NEC has expressed its approval for the government to seek private funding for a new airline to replace South african airways.

jul 2 2020 9:08am
Mixed
SAA BRPs criticised for drawn out process as retrenchment judgment reserved

Judgment has been reserved in the appeal case between the South african airways (SAA) business rescue practitioners (BRP) and three workers' unions.

jun 30 2020 8:32pm
Mixed
Public Enterprises rallies support for SAA rescue plan

The Department of Public Enterprises (DPE) has urged creditors, employees and other stakeholders of South african airways (SAA) to vote in support of the business rescue plan of the airline to avoid liquation. It is the only pathway for rescue and restructuring of SAA, the department said. DPE said it believes the approval of the business rescue plan would help creditors and employees to be "co-creators" of a new airline and ensure a strong base is maintained for the growth of the local aviation industry. SAA Business Rescue Practitioners (BRPs) have scheduled a creditors" meeting on 25 June to vote on the business rescue plan. A vote in favour of the plan by 75% of the voting interests would be required to carry the vote, DPE said. The DPE is of the view that a positive vote to finalise the business rescue process would be the most expeditious option for the national carrier to restructure its affairs, its business, debt and other liabilities, resulting in the emergence of a new viable, sustainable, competitive airline that provides integrated domestic, regional and international flight services. Should creditors vote not to support the business rescue plan, SAA would face liquidation, the department explained. The DPE has since highlighted the disadvantages of the liquidation of the airline. According to the department, creditors would receive substantially less for debts owed to them by SAA. There would be a loss of opportunities to provide the new airline with technical, financial and operational expertise, the department said. Meanwhile, the future business partnerships and the severance benefits to retrenched employees would be capped across the board, regardless of years of service. Should SAA be liquidated, every employee, no matter the number of years spent at the airline, will receive only a capped severance settlement of R32 000 and lose all other benefits, DPE said. However, a restructuring process would offer severance and retirement packages based on years of service, the opportunity to re-employ skills for displaced employees in the future and opportunities to start their businesses as service providers for a new airline. For the DPE, the finalisation of the business rescue plan and the emergence of the new airline would allow unions and other key stakeholders, who have deep knowledge of the sector, to be co-creators of a new airline, as well as coming up with novel ways of addressing the interests of the displaced workers, the department said. The department said it supports the provisions of the Companies Act, which prescribe that the primary function of a business rescue process is to develop and implement a rescue plan, with the view of fundamentally restructuring the business affairs and other liabilities of a company in distress, so as to maximise the likelihood for it to continue to exist on a solvent basis. That is why government has made funds available to the BRPs R5.5 billion to augment the revenue of SAA to develop a detailed business rescue plan, to consult with creditors, other affected stakeholders like employees, the shareholder, the board and management of the company under business rescue, said DPE. Government is committed to supporting a competitive, viable and sustainable national airline and wishes to engage constructively towards the national interest objective of such an airline in a constrained fiscal environment, taking into account the impact of the COVID-19 pandemic on this situation.

jun 25 2020 10:02am
News
Airlink eyes struggling SAA's assets

Privately-owned airline Airlink is interested in buying some of the assets of struggling state carrier South african airways (SAA) and expanding on routes SAA discontinues, Airlink's chief executive told Reuters. SAA entered a form of bankruptcy protection in December and is fighting for its survival.

jun 25 2020 10:02am
Mixed
Unions reject SAA rescue plan over job cuts

The National Union of Metalworkers of South african (NUMSA) and the South african Cabin Crew Association (SACCA) on Friday rejected job cuts proposed to rescue South african airways, which has cost the government more than a billion dollars to stave off bankruptcy and will cost it about half that again to reform.

jun 24 2020 12:10pm
Mixed
DPE to oppose SAA liquidation application

The Department of Public Enterprises (DPE) has expressed its intention to oppose an SA Airlink application, which seeks to place South african airways (SAA) under provisional liquidation. In a statement on Monday, the department said it 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 SAA. The DPE has not been cited as a respondent in the SA Airlink application. 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 creditors meeting through the courts, the department said. It said 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 department questioned. 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 and competitive airline that provides integrated domestic, regional and international flight services. It further supports the provisions of the Companies Act, which prescribes that the primary function of a business rescue process is to develop and implement a rescue plan, with the view of fundamentally restructuring the business affairs and other liabilities of a company in distress, in a manner which maximises the likelihood for it to continue to exist on a solvent basis. For this reason, said the department, government has made funds available to the BRPs to the tune of R5.5 billion to augment the revenue of SAA, so as to develop a detailed business rescue plan, to consult with creditors, other affected stakeholders like employees, the shareholder and the board and management of the company under business rescue. Government is committed to supporting a competitive, viable and sustainable national airline and wishes to engage constructively towards the national interest objective of such an airline in a constrained fiscal environment, taking into account the impact of the COVID-19 pandemic on this situation, DPE said.

jun 22 2020 8:29pm
News
Government fights new push to liquidate SAA

The Department of Public Enterprises (DPE) has expressed its intention to oppose an SA Airlink application, which seeks to place South african airways (SAA) under provisional liquidation.

jun 22 2020 8:29pm
Mixed
Government emphasises support for SAA

Government has emphasised its support for the national carrier, South african airways (SAA). This comes following the publication of the carriers business rescue plan on 16 June 2020. 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, said the Department of Public Enterprises. This is to resolve the untenable situation of the current South african airways specifically for its employees and its creditors, as well as to support important economic objectives. The aviation industry in South Africa requires the capabilities of a SAA that is reconstituted, restructured and reinvigorated, without the legacy burdens, including corruption, poor leadership and unsustainable costs, which have beset SAAs past, said the department in a statement. SAA was placed in business rescue on 6 December 2019 and this effectively means that the national carrier has been under the complete direction and control of business rescue practitioners (BRPS). The Companies Act prescribes that the primary function of a business rescue process is to develop and implement a rescue plan with the view of fundamentally restructuring the business affairs and other liabilities of a company in distress, in a manner which maximises the likelihood for it to continue to exist on a solvent basis. If this is not possible, the second option is to dispose of assets so that the company in distress can obtain better returns for its creditors and shareholders than they would otherwise receive from the liquidation of the company. Given the prospects of rescuing SAA, government was against the option of liquidation. The BRPs had a substantial period of time and additional financial resources R5.5 billion to augment the revenue of SAA - at their disposal to undertake the tasks expected of a BRP, which, in terms of the Companies Act, to develop a detailed business rescue plan, to consult with creditors, other affected stakeholders like employees, the shareholder and the board and management of the company under business rescue. In addition to this amount, further revenue was generated over the last six months, through repatriation flights and cargo flights for essential goods. As the shareholder of SAA, government, taking into account the broader national interests, has made it clear that the desired outcome should be to establish a viable, sustainable national carrier that must emerge from the business rescue process. Particularly so as government if expected to marshal the resources necessary for this process from diverse sources, said the department. Through government guarantees, the BRPs have had significant additional financial resources at their disposal to enable them to restructure SAA by stemming the tide of wastage, an excessive cost-structure and cash burn. We will assess the plan which, we are concerned, might have not been adequately accomplished. In addition, government has enabled consultations with employee representatives in the Labour Consultative Forum. This process must be embraced by the BRPs and taken to a state of completion. As a shareholder government wishes to engage constructively towards the national interest objective of creating a viable, competitive, sustainable airline in a constrained fiscal environment, taking into account the impact of COVID-19 pandemic on this situation.

jun 18 2020 5:53pm
News
SAA is offering repatriation flights for people who live and work internationally - here's how much they cost

South african airways has published a list of international flights which it will operate as part of the country's repatriation programme.

jun 10 2020 9:53pm
Mixed
Government and unions working on plans for 'new' SAA

South Africa's Public Enterprises Department and labour unions are working together on a business model for a new national carrier that will replace the embattled South african airways.

jun 5 2020 10:49am
Mixed