SAA BRPs waiting on government to communicate funding plan for airline’s restructure

Johannesburg – The South African Airways (SAA) business rescue practitioners (BRPs) said that they have not been informed by government about when funding to restructure the airline would be available.

The Public Enterprises Department said that it was confident that the R10.4 billion for the restructured airline would be made available to the practitioners very soon.

Finance Minister Tito Mboweni is expected to iron out during his Medium-Term Budget Policy Statement next month where the funding will come from.

The administrators have been overseeing the restructuring project for almost a year.

The Department of Public Enterprises said that government was deciding on different ways in which the money to revive the new airline could be channelled.

Department head, Kgathatso Tlhakudi, said there was a need for a revived airline.

“We need a brand that will ensure that people from all over the world are able to reach us.”

After saying that Treasury didn’t have fund for a new national carrier before, Mboweni has since remained tight-lipped about money for the airline.

Business rescue practitioners Leslie Matuson and Siviwe Dongwana said that once government had communicated its plan, they would inform creditors on a way forward.

The embattled airline has retrenched 2,700 employees and offered severance packages after losing their jobs as a result of poor management of the national airline.

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