Strike affects SAA financial position


The recent South African Airways (SAA) strike resulted in a sudden deterioration of the state-owned company’s financial position, the Public Enterprises Ministry revealed.

The Ministry said in a statement it was working with SAA to urgently formulate immediate actions required to provide support to enable the State-owned Enterprise to carry on its business.

SAA cannot continue “as is” the Ministry said.

Government efforts, under the direction of Public Enterprises Minister Pravin Gordhan, focus on ensuring the airline is stabilised in the short term and has the necessary support from all stakeholders.

Government also seeks to ensure governance and leadership issues are addressed, including appointing an effective management team.

These efforts, added the Ministry, are to ensure the airline returns to a stronger financial footing in the medium to longer term.

“None of this can be achieved without contributions by all key role players in the airline. The actions undertaken by the Minister include involving relevant stakeholders to participate in the support initiative,” the Ministry said.

Further details will be provided over the next week.