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Public Enterprises to 'review' decisions on SAA


The department of public enterprises says it is "concerned" that restructuring decisions taken by SAA's business rescue practitioners have caused market and customer uncertainty that may jeopardise the long-term future of the state-owned airline.

It says Government will be making representations to the practitioners in order to balance the necessity for trimming unprofitable routes with the need to ensure the future sustainability of both the airline and South Africa’s aviation industry.

The embattled national carrier went into voluntary business rescue in December.

On Thursday, business rescue practitioners Les Matuson and Siviwe Dongwana said several international, domestic and regional routes would be stopped effective March 1.

They added that more fuel-efficient aircraft would be used, and certain assets would be sold off to try and make SAA profitable.

Domestically, only the Johannesburg and Cape Town routes would remain, although they would be scaled down.

-African News Agency