Public Enterprises welcomes commitment to source funding and support new SAA
16 July 2020
The Department of Public Enterprises (DPE) welcomes the commitment by National Treasury that the government will support and source funding for a business rescue plan for South African Airways (SAA), which will result in the emergence of a new viable, sustainable, competitive national airline.
In terms of the business rescue plan that was published by the Business Rescue Practitioners (BRPs) for SAA, government, as the sole shareholder of SAA, is required to provide a letter of support for funding the plan “where it results in a viable and sustainable national flag carrier that provides international, regional and domestic services”.
A letter of support that commits the government “to mobilise funding for the short, medium and long term requirements to create a viable and sustainable national airline” was signed by the Ministers of Finance and Public Enterprises on 15 July 2020 and provided to the BRPs.
The funding commitment gives effect to Cabinet’s endorsement of a business rescue plan for SAA and Cabinet’s position that “it supports the proposal for a new airline and the concerted effort to mobilise funding from various sources, including from potential equity partners for the uptake of the new airline.”