File
The Democratic Alliance said that government has agreed to a new R21bn bailout for embattled South African Airways.
DA MP, Alf Lees, said he had sight of a document from the airline’s Business Rescue Practitioners, Siviwe Dongwana and Les Matuson, which allegedly reveals the new proposal.
“This proposal is part of a plan for a re-imagined ‘new airline’ that is to be established as a state-owned company by the government in terms of the proposed restructure,” he said.
Lees said that draft business rescue plan envisages the “new SAA” to fall under a new holding company called “New HoldCo”, which will oversee SAA City Centre, SAA Technical, Air Chefs and Mango Airlines.
“Renewed plans by the BRPs calling for the establishment of a new airline are hardly surprising. It follows a spirited political campaign by Gordhan to discredit the business rescue process and resurrect the folly of failure by calling for the establishment of a new state airline,” he said.
Lees said that if this draft business rescue plan is approved in its current form, SAA will continue to be a “fiscal black hole for years to come” with the BRP’s projecting that the new company will trade at losses totalling R19.9 bn for the first three years.
The Department of Public Enterprises was approached for comment.
