Johannesburg – The government says kit has received “unsolicited proposals from private sector funders, private equity investors and potential airline partners” for a new national airline to emerge from the SAA business rescue process.
It added that it intends to pursue “credible proposals” for private sector investment and strategic partnerships in South African Airways, as well as equity participation for employees.
“Government has expressed its intent and commitment to fundamentally restructure and transform SAA into a viable, sustainable, and competitive national carrier. The broader aviation industry and the passenger air transport sector specifically, is essential for servicing and growing economic connectivity and cargo carriage,” said the Department of Public Enterprises in a statement on Tuesday.
SAA went into business rescue in December 2019. Its creditors are set to vote on the proposed rescue plan on Thursday.
However, private regional airline Airline is set to bring an urgent court application on Wednesday to prevent a vote on the plan, which will provide concurrent creditors with only 7.5% cents in the rand.
The DPE says it realised that airlines across the world have been facing severe drops in flights due to Covid-19, leading to financial and other pressures.
