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By Citizen Reporter

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SAA can’t continue ‘as is’ – Gordhan’s dept puts its foot down

'Urgent immediate actions' are being formulated to enable SAA to carry on its business, the public enterprises department says.


Government is pulling out all stops to ensure that the beleaguered South African Airways SOC Limited (SAA) is stabilised in the short term “and has the necessary support from all stakeholders”, the department of public enterprises says.

This follows Public Enterprises Minister Pravin Gordhan telling a parliamentary briefing a week ago that SAA might not be able to pay salaries at the end of the month.

ALSO READ: SAA salaries may not be paid month end, says Gordhan

Gordhan is spearheading government’s efforts to keep the ailing airline in the sky, his department said in a press release.

The exact details of what these efforts are will be provided over the next week, according to the statement.

The department says that “the strike [at SAA] with consequential cancellation of bookings has resulted in a sudden deterioration of SAA’s financial position.

“Accordingly, the Department of Public Enterprises is working together with SAA to urgently formulate immediate actions that will be required to provide support to enable SAA to carry on its business. However, SAA cannot continue “as is”.

“Government efforts, under the direction of Minister of Public Enterprises, Mr. Pravin Gordhan, are focused on ensuring that:

  • The airline is stabilized in the short term and has the necessary support from all stakeholders;
  • Governance and leadership issues are being addressed, including the process of appointing an effective Management Team; and
  • The airline returns to a stronger financial footing in the medium to longer term.

“None of this can be achieved without the necessary contributions by all the key role players in the airline.

“The actions being undertaken by the Minister include involving relevant stakeholders so that they can participate in the support initiative,” the statement concludes.

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