South African Airways (SAA) has announced that its Board of Directors has adopted a resolution to place the company into business rescue at the earliest opportunity.
The SAA Board of Directors and the Executive Committee have been in consultations with the shareholder, the Department of Public Enterprises (DPE), in an effort to find a solution to our company’s well-documented financial challenges.
A statement from SAA’s Board said that: “The considered and unanimous conclusion has been to place the company into business rescue in order to create a better return for the company’s creditors and shareholders, than would result from any other available solution. Furthermore, the company is seeking to minimize the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully.”
It notes as well that: “SAA understands that this decision presents many challenges and uncertainties for its staff. The company will engage in targeted communication and support for all employee groups at this difficult time.”
The Board’s statement indicated that: “SAA will endeavour to operate a new provisional timetable and will publish details shortly. The company greatly appreciates the continued support of both its customers and partners in the travel industry around the world.”
SAA’s Board of Directors will also announce the appointment of business practitioners in the near future, and provide updates as and when appropriate.
Board also noted that services operated by SAA’s subsidiary airline, Mango, will continue as usual and as scheduled.