An amount of R2.7 billion is set to be reprioritised from the appropriation to South African Airways to implement the business rescue plan, and subsidiaries.
CEO of Belujane Konsult, Chris Aligbe
Aviation industry stakeholder and Chief Executive Officer of Belujane Konsult, Chris Aligbe, in this interview speaks on the challenges in the aviation industry, even as he appeals to the federal government to support the parastatals to survive the economic challenges occasioned by the coronavirus. He also calls on the Asset Management Corporation of Nigeria to invite the founders of Aero Contractors and Arik Air and hold talks with them on the future of the airlines. Chinedu Eze brings the excerpts:
For some time now there has been an exchange of words between the Asset Management Corporation of Nigeria (AMCON) and the former management of Arik Air. While AMCON has said it met a hopeless situation when they took over Arik in February 2017; the airlineâs former management insists otherwise. So, what do you think?
17 Months Later: South African Airways Pulled Out Of Business Rescue simpleflying.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from simpleflying.com Daily Mail and Mail on Sunday newspapers.
The balance of the debt owed will be paid over the next three years
#SAA s business rescue has come to an end. The national carrier has been under business rescue for 17 months. It has now been handed back to the executives and the board. Business Rescue Practitioners say R7.8 billion rand has been received from government. Courtesy #DStv403pic.twitter.com/NKe8Q4tcC1 eNCA (@eNCA) April 30, 2021
After 17 months the airline is handed back to the board. The business rescue plan was voted for and approved by creditors on 24 July 2020 with a R10.3 bn funding required for its implementation. To date R7.8 bn has been received from government for the implementation of the Plan.
SAA cutting jobs in plane maintenance division
By Loni Prinsloo
(Bloomberg) – South African Airways’ plane-maintenance division is cutting jobs to help navigate the crisis that’s gripped the air-travel industry throughout the coronavirus pandemic.
The restructuring is unavoidable in light of reduced demand from its airline customers, SAA Technical said in a statement. While the state-owned company didn’t specify how many employees would be affected, Derek Mans, a representative of the Solidarity union, said about 60% of a total workforce of just over 2,000 could be eliminated.
The move comes more than a year after SAA, the national carrier and SAA Technical’s main customer, last flew a commercial flight. The airline has been mired in bankruptcy proceedings and its own major job-cuts plan, while international travel restrictions to contain the spread of Covid-19 have hampered efforts to resume even a partial service.