In a case filed by South Africa’s opposition party, Finance minister Tito Mboweni has denied that government will use state funds to rescue South African Airways. Furthermore, the preconditions needed for the rescue plan to be implemented needs to be approved by all parties by midnight today and if there is no acceptance a further amendment of the plan will take place on Friday. George Nell, Senior Business Rescue Practitioner at Corporate Business Rescue joins CNBC Africa for more.
In a document sent to trade unions over the weekend giving the rationale for the planned job cuts, the administrators said SAA had made a net loss of 5.5 billion rand in the year to end-March, with further losses incurred since.
“Telkom is an interesting model that we could actually look at as we go forward,” Public Enterprises Minister Pravin Gordhan said, adding that the new SAA cannot be run by a “bunch of amateurs”.
SAA creditors have agreed to the proposed business rescue plan to restructure the embattled airline, there has also been an appointment of an interim CEO and in the coming days a new board. Aviation Analyst, Desmond Latham joins CNBC Africa for more.
JOHANNESBURG (Reuters) - Creditors of loss-making South African Airways (SAA) approved a rescue plan on Tuesday which requires at least 10 billion rand ($596 million) in new funding, throwing the...
South African Airways appointed a new interim CEO and the creditors approved the business rescue plan. In the last few hours the unions have been meeting to discuss their attitude towards this deal. The National Union of Metal Workers for South Africa (NUMSA) holds quite a bit of sway at SAA and therefore is likely to be influential. Phakamile Hlubi-Majola, Spokesperson, NUMSA joins CNBC Africa for more.
The government has approved a rescue plan for the ailing South African Airways that could cost taxpayers up to R16.3 billion, and is likely to be controversial. Already taxpayers have propped up the loss-making airline to the tune of R30 billion, in the last decade. Part of the plan is to get private money to fund the rescue plan and the appointment of a new interim CEO, Phillip Saunders. Guy Leitch, Editor of SA Flyer & FlightCom magazines joins CNBC Africa for more.
Is the South African government prepared to let go of control of its ailing airline South African Airways in a bid to save it? "We are not obsessed with control," the deputy director general of the Department of Public Enterprises was quoted as saying. He added that the government was ready to cede management control to private investors. What does this mean for business - is it practical? Air News Editor, Heidi Gibson joins CNBC Africa for more.