Government has not yet discussed SAA rescue plan: public enterprises

The public enterprises department says it has received a draft business rescue plan for SAA, which is in business rescue.

“Government has not discussed the plan yet and no decisions have been taken on some of the proposals it contains,” the department said in a statement.

The government says it will review the plan, explore various funding options and communicate its decisions in due course.

The response by the department follows a report that government has agreed to fund a restructuring of SAA, if a business rescue plan for the struggling state-owned airline is adopted.

The department said on Monday the draft plan had been prepared by the business rescue practitioners and is meant to be discussed by various stakeholders including creditors, employees and the government.

“President Cyril Ramaphosa on Sunday told members of the South African National Editors’ Forum that he saw a good future for the airline, which enjoys support right across the continent.”

The department said the government has embraced the restructuring process as part of a path to a new, dynamic and financially viable airline that will serve SA’s economic and strategic interests.