SAA on brink as government scrambles to defer ‘drop dead’ date

South Africa’s government is urgently trying to extend the period of operations for South African Airways after the carrier’s business rescue practitioners warned that 8 May would amount to a “drop dead” day when all flights would cease. The country’s public enterprises minister, Pravin Gordhan, outlined to a parliamentary committee on 6 May that a new airline was in the planning stage – although he gave few details – but indicated friction between the government and unions on one side and the practitioners on the other. “We need to find some quick answers,” said Gordhan, referring particularly to a need to extend SAA’s operations. He told the committee that meetings over finances were due to take place in an effort “give continuity” beyond 8 May. “We also want to indicate there should be no fire-sale of important assets of SAA or a move towards liquidation,” he added. If the practitioners pursue a wind-down process, said Gordhan, it would not achieve the original objective set by the government for a business rescue.<br/>