October 28, 2020

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South African Airways: Add or close money

South African Airways: Add or close money

The state-owned company has been struggling financially for years and has been under bankruptcy since December last year. There is a rearguard action about the future of the company, with the views of the trustees, the government and the trade unions diverging.

The South African Government is on two heads. On the one hand, it wants to keep South African Airways afloat with new money and a major restructuring, but on the other hand, the government also sees the benefits of creating a completely new airline, which is not burdened by an old debt burden and is also attractive to external shareholders.

However, the government has different ideas than the curators and the trade unions. This makes the rescue of South African Airways difficult. It is clear that costs must be reduced by reducing the workforce and the network. And even then, millions have to be added to fill the greenhouse.

Read a comprehensive analysis of the situation at South African Airways in the July issue of Aviation News Magazine. Order a separate copy or take a Reduced subscription.