Logo
Friday, 29 March 2024
Monday, 08 Jun 2020 03:00 pm

SAA administrators seek another rescue plan delay after unions object

Administrators at state-owned South African Airways (SAA) have asked creditors to delay the publication of a rescue plan for the cash-strapped airline until next week, after trade unions objected to the plan being published on Monday.

newsImage
 

The rescue plan for SAA, which has not made a profit since 2011, has been repeatedly pushed back amid fierce wrangling over the airline’s future.

The government and unions have been pressing for SAA to be salvaged in some form, despite its longstanding frailties being exacerbated by the COVID-19 pandemic, which has pushed even once-profitable airlines into financial distress.

The administrators, appointed in December when SAA entered a local form of bankruptcy protection, asked creditors to approve a delay in the publication of the rescue plan until June 15.

Their latest request followed a letter from the attorneys of the NUMSA, SACCA and SAAPA unions objecting to the plan being published before unions held further talks with the government on the draft plan.

The administrators said they thought it would not “be appropriate to proceed with the publication of the business rescue plan without conveying the request of the unions that represent a majority of the SAA employees”.

A draft plan from late last month proposed a restructuring funded by more bailouts. It also suggested cutting the airline’s workforce and aircraft fleet roughly in half.

Read here


Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


Smarter Decisions with Smart News

Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.

Subscribe to our newsletter
Get the latest in your inbox weekly Sign up for the fully charged newsletter
© The News and Media Division of The Insight Partners 2024 | All Rights Reserved | Privacy Policy