Fed-up Solidarity wants court to place SAA under business rescue

Picture: Waldo Swiegers/Bloomberg

JOHANNESBURG — Loss-making SAA keeps bleeding South African taxpayers dry and trade union Solidarity says it has had enough. Later this week, the union will announce plans of a court bid to place SAA under business rescue in a move aimed at sparking some kind of privatisation deal to save the failing airline. The court bid comes after SAA late last month reported massive losses once again. Last year, the airline notched up a loss of R3.7bn while it is forecasting a loss of R4.8-billion for the 2017-18 period. – Gareth van Zyl 

By Solidarity*

In a letter to President Cyril Ramaphosa and Ministers Nhlanhla Nene and Pravin Gordhan, trade union Solidarity expressed its concern that the management and financial models of the SAA are unsustainable and ineffective. In addition, the trade union announced its intentions to initiate a court process to place SAA under business rescue.

Read also: Here’s how cash-guzzler SAA could return to profit in three years – new CEO

According to Werner Human, Deputy Chief Executive at Solidarity, the Auditor General stated in his recent report that a substantial uncertainty exists as to whether SAA will be able to continue as a going concern, while President Ramaphosa and Ministers Nene and Gordhan expressed some harsh words about the struggling airline and undertook to turn the airline around. “At present, there is no other choice but to privatise SAA, at least in part,” said Human.

“Solidarity invites the President and Ministers to support its application to place SAA under business rescue, and will reveal its legal strategy regarding this process on this coming Thursday, 12 April, during a press conference,” confirmed Human.

  • Solidarity is a trade union that has approximately 140 000 members in all occupational fields in South Africa.

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