Investec CEO warns government indecision threatens SAA survival

Squabbling between South Africa’s government and the state-owned airline’s bankruptcy administrator is threatening its chances of survival, Investec’s CEO said. President Cyril Ramaphosa in December placed debt-ridden South African Airways in business rescue, a local form of bankruptcy protection. Over the past few days, there’s been a flurry of conflicting messages from the government and the business-rescue practitioners, leaving investors and customers unclear about whether the carrier has a future. Last week, Ramaphosa and Public Enterprises Minister Pravin Gordhan said they oppose the business-rescue practitioners’ decision to close unprofitable routes. On Sunday, the chairman of the ruling African National Congress, Gwede Mantashe, reportedly said the airline should be sold. Finance Minister Tito Mboweni has repeatedly said it should be closed. “If the business-rescue practitioners recommend one route, the government wants a different route, which plan would the funders be required to support?” Investec CEO Fani Titi said Monday. “Until there is a clear plan, supported by all stakeholders and properly funded, I think SAA is in trouble.”<br/>