SAA flights at risk without $139 million from government: union

South African Airways could have to suspend some flights and delay salary payments if the government can’t come up with a plan soon to provide the 2b rand ($139m) it promised the airline last month, a trade union official said on Wednesday. State-owned SAA entered a form of bankruptcy protection last month in an effort to rescue the company and 10,000 related jobs. At the time it was promised 2b rand from the government and 2b rand from lenders. But unions briefed by the specialists appointed to turn around the carrier were told on Wednesday that the government had not yet been able to provide its portion of the funds and that the 2b rand from lenders had been exhausted, National Transport Movement president Mashudu Raphetha told Reuters. Unions were told SAA’s business rescue practitioners needed clarity from government on the 2b rand of promised funding by the end of Jan. 19, Raphetha said. Les Matuson and Siviwe Dongwana, the business rescue practitioners, said in a statement: “We remain hopeful that a mechanism can be found to unlock the liquidity constraints. Government continues to indicate its support for the business rescue process and together we are considering various scenarios to keep the entity operational. ... The liquidation of SAA is not one such current scenario.” <br/>
Reuters
https://www.reuters.com/article/us-safrica-saa/south-african-airways-flights-at-risk-without-139-million-from-government-union-idUSKBN1ZE2UI
1/16/20
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