African Airways News Updates 2020

56 Latest African Airways news updates.
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Government reprioritises funding to restructure SAA

The Department of Public Enterprise (DPE) on Friday confirmed that government will reprioritise funds to finalise the restructuring of South african airways (SAA) and the implementation of the airlines business rescue plan. The DPE said an announcement to this effect will be made in the Adjustments Appropriation Bill, which will soon be introduced in Parliament. The national carrier will not be liquidated. Because the restructuring process should be brought closer to finalisation in the next few weeks, lending institutions will be requested to finance the restructuring process and honour commitments for voluntary severance packages and retrenchments. At the same time, the DPE will continue to assess the 20 unsolicited expressions of interest from private sector funders, private equity investors and partners for a future restructured SAA. The DPE is sympathetic to the plight of SAA employees, while continuing to work with other government departments, including National Treasury, to make sure that the airlines restructuring plan will be successfully implemented, the department said. In charting the way forward, the DPE believes the key to solving the difficulties at SAA is the finalisation and implementation of the business rescue process, followed by the start of a restructured airline and appointment of new non-executive directors and leadership team, including securing a credible strategic equity partner that can introduce the required technical, financial, and operational expertise into the business.

sep 19 2020 10:44pm
Public enterprises calls for patience on SAA matter

The Department of Public Enterprises (DPE) has called on South african airways (SAA) employees and creditors to be patient while work continues to find a constructive outcome to challenges at the airline. The department is aware of a creditors meeting called to discuss the future of the business rescue plan for South african airways and protests scheduled to be held outside the airlines offices on Friday. Efforts to locate funding sources continue. The DPE remains sympathetic and deeply mindful of the plight of SAA employees, the department said. In charting a way forward, the DPE believes critical to solving the difficulties facing SAA is: the finalisation and implementation of the business rescue process, followed by the start of a restructured airline, appointment of a new board and executive team, and securing a credible strategic equity partner who can introduce the required technical, financial, and operational expertise into the business. In a statement on Thursday, the department said government is working with transaction advisors to assess proposals from several potential strategic equity partners for the airline. The department recognises the interests of workers and creditors. It was reported on Thursday that administrators of the airline called creditors to Fridays meeting after government missed the deadline to make funding available for the airlines restructuring plan. SAA was placed under business rescue in December 2019.

sep 18 2020 6:49pm
Efforts to finalise SAA business rescue process ongoing

The Department of Public Enterprises (DPE) says efforts to finalise the South african airways (SAA) business rescue process and the restructuring of the airline are ongoing, and a decision on the sources of funding will be announced soon. In line with the directive of Cabinet for the DPE and National Treasury to mobilise funds for the new SAA, the DPE said the two departments have been working hard under the guidance of the Inter-Ministerial Committee (IMC) on SAA. The IMC is entrusted with the responsibility of oversight of the restructuring process. The DPE also welcomed the decision of the Business Rescue Practitioners (BRPs) to keep the creditors informed about the process and the likelihood of a meeting of the creditors" committee. This is in accordance with their fiducial responsibility to the creditors to inform them on the progress with the business rescue process, and source the creditors consent on the way forward. The department said it remains confident that a solution will be found in time to avoid liquidation of SAA, as per the 26 July 2020 Cabinet statement. DPE, with the transaction advisor Rand Merchant Bank (RMB), continues to assess the unsolicited expressions of interest for the new SAA from the private sector funders, equity investors and strategic partners. A number of engagements have been undertaken with the potential partners and the interest is encouraging that a suitable long-term investor will be found to enable the relaunch of the airline and its subsidiary businesses and divisions, the department said. The department said it believes that the restructuring process, which is contained in the SAA Business Rescue Plan, is fundamental and will create a solid base for the emergence of a competitive, viable and sustainable national airline for the Republic of South Africa.

sep 11 2020 9:16pm
South african airways needs state cash next week -administrators South african airways needs state cash next week -administrators

South african airways (SAA) needs short-term funding from the government by the end of next week for the state carrier's business rescue process to continue, its administrators said in a statement on Thursday.

sep 10 2020 9:16pm
mixed News : Mixed
Ethiopian Airlines in rescue talks with SAA -CEO

Ethiopian Airlines is in talks over possible involvement in the rescue of flagship carrier South african airways (SAA), the head of the airline told Reuters on Friday.

sep 4 2020 9:17pm
mixed News : Mixed
'Government has not committed to fund SAA rescue plan', Tito Mboweni says

The South african government has not committed to fund a restructuring plan for struggling South african airways (SAA), Finance Minister Tito Mboweni said in court papers seen by Reuters on Tuesday.

jul 23 2020 6:34pm
business News : Mixed
'Government has not committed to fund SAA rescue plan', Tito Mboweni says

The South african government has not committed to fund a restructuring plan for struggling South african airways (SAA), Finance Minister Tito Mboweni said in court papers seen by Reuters on Tuesday.

jul 22 2020 1:29pm
politics News : Mixed
'Government has not committed to fund SAA rescue plan', Tito Mboweni says

The South african government has not committed to fund a restructuring plan for struggling South african airways (SAA), Finance Minister Tito Mboweni said in court papers seen by Reuters on Tuesday.

jul 22 2020 1:29pm
mixed News : Mixed
SAA could adopt Telkom model of governance: report

Public Enterprises minister Pravin Gordhan says that the government would consider a shareholder structure similar to Telkom, for South african airways.

jul 21 2020 8:38am
business News : Mixed
Public enterprises welcomes Treasury's letter of support for SAA

The department of public enterprises said on Thursday it welcomes the commitment by National Treasury that the government will support and source funding for a business rescue plan for South african airways (SAA)

jul 17 2020 8:18am
business News : Mixed