By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: South African Airways goes into Business Rescue
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > South African Airways goes into Business Rescue

South African Airways goes into Business Rescue

Travel Radar
Last updated: 4 December 2019 21:02
By Travel Radar Staff
2 Min Read
Share
SAA Business Rescue
Stormy Weather for SAA
SHARE

We have reported over the past few weeks on the immense difficulties being experienced by South African Airways. Most recently, one of the largest travel agents in that country ceased selling tickets for the airline and two travel insurance agencies declined to continue covering the airline for insolvency. This followed an eight-day strike by union members, which had a major role in pushing the airline to the brink of collapse.

Late today (Wednesday) it was announced that the organisation has gone into voluntary ‘business rescue’. The legal process involves putting the administration into the hands of a business rescue practitioner who manages the affairs of the distressed company, and as such removes managerial and executive control from the shareholders, in this case the South African government.

The process attempts to restructure the affairs of the organisation to best insure its survival while simultaineously protecting it from claims by creditors. The only other option was to allow the airline to cease operations, which would have caused massive inconvenience to the travelling public, potentially caused the loss of many thousands of jobs and from a public finance perspective, caused the claims of creditors to have become immeadiately valid against the government. It’s a clear admission that the present management itself is not able to rescue the airline, and to some extent distances the government from the inevitable repercussions; there is no doubt that the decision will be strongly opposed by the unions.

Significantly, this is the first instance of a state-owned enterprise going into business rescue since 1994 when a democratically-elected government came to power in South Africa.

You Might Also Like

Israeli Airline El Al Extends Boston and Tel Aviv Service After Increased Demand
SMBC’s Faith in The 737-8 Max
Tigerair Taiwan Receives First A320neo Powered by Pratt & Whitney GTF Engines
Air Canada Revises Forecast Amid Post-Strike Uncertainty
Display Teams; The Blue Angels
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
ByTravel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article UnitedA321XLE United replace 757s with AIRBUS alternative
Next Article Eurocontrol_hoofdkwartier_1 French Strikes Disrupting Air Traffic Control Across Europe
Subscribe
Login
Notify of
guest

guest

3 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A red car driving on a road with the Hollywood sign in the background
Hotels by the Hour in LA : redefining luxury and lifestyle in the heart of the city
Travel Travel Radar
Avelo aircraft N808VL at RDU airport
Avelo Airlines Launches New Membership Programme
Airlines Aviation Points & Loyalty
OX1 Plant © OXCCU
OXCCU Raises £20.75 million to develop Sustainable Aviation Fuel from Waste Carbon
Airline Economics Aviation Manufacturing Technology
A320neo-and-A321neo-in-flight-together
Airbus A320 Overtakes Boeing 737 as Most Popular Aircraft with Record Deliveries
Aircraft Aviation Manufacturing
British AIrways Boeing 787 Dreamliner in flight
British Airways to Boost Connectivity between India and the UK
Airline Economics Airlines Aviation Route Development
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up