Government still seeks ‘strategic equity partner’ for SAA

21 Jan 2020 - By Adele Mackenzie

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Government remains committed to the creation of a “sustainable, competitive and efficient airline with a strategic equity partner” through its business rescue process, according to a statement from the Department of Public Enterprises (DPE).

This comes on the heels of the announcement earlier today that the national carrier had cancelled several key flights this week, including those to Munich – effective Monday, January 20 – with the cancellation in effect until Friday, January 24.

In addition, several domestic flights – notably between Johannesburg, Cape Town and Durban – were cancelled for the same period (until Friday).

Spokesperson for the national carrier, Tlali Tlali, said SAA would accommodate passengers on its services between Johannesburg and Frankfurt as well as London Heathrow.

“Some passengers travelling to Munich, and others travelling via Munich to other destinations, will be re-accommodated for some of their journey on partner airlines in the Star Alliance to minimise delays,” he said.

Tlali highlighted that these decisions were in line with SAA’s usual policy of reviewing flights and consolidating services with low demand.

“Furthermore, during the current process of business rescue, these cancellations represent a responsible strategy to conserve cash and optimise the airline’s position ahead of any further capital investment,” he added.

The joint business rescue practitioners, Les Matuson and Siviwe Dongwana reiterated via their spokesperson, Louise Brugman, that they were hopeful that a mechanism could be found to unlock SAA’s liquidity constraints.

She pointed out that the carrier was promised R2 billion (€125 million) from lenders – which it received – and another R2bn bailout from government, which it has yet to receive from National Treasury.

Spokesperson for DPE, Sam Mkokeli, confirmed that, following a meeting with the business rescue practitioners over the weekend, the department was engaging with the National Treasury to raise funds for the airline in line with the post-commencement finance (PCF) undertaking.

“We are determined to contribute to the business rescue process so that we could minimise job losses and give birth to a rejuvenated SAA that all South Africans could be proud of,” he said.

The following international flights have been cancelled:

Johannesburg (JNB)-Munich (MUC)

SA264 Departs 21:15 Arrives 07:00 Dates: January 20, 21, 22, 23 & 24

Munich (MUC)-Johannesburg (JNB)

SA265 Departs 20:30 Arrives 08:20 Dates: January 20, 21, 22, 23 & 24

The following domestic flights operated by SAA have been cancelled:

Johannesburg (JNB)-Cape Town (CPT)

SA303 Departs 05:30 Arrives 07:35 Dates: January 20, 21 & 24

SA307 Departs 07:00 Arrives 09:05 Dates: January 21

Cape Town (CPT)-Johannesburg (JNB)

SA316 Departs 08:20 Arrives 10:15 Dates: January 20, 21 & 24

SA322 Departs 09:50 Arrives 11:45 Dates: January 21