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Fin24 reports that SA Express will not be able to pay salaries for April unless it obtains financial support from the Covid-19 Unemployment Insurance Fund or the Temporary Employer/Employee Relief Scheme (Ters) overseen by the CCMA.
This has been indicated by the state-owned regional airline's business rescue practitioners (BRPs). There has been no outcome, as yet, to a similar application for money to pay the March salaries. A letter addressed to stakeholders indicated that the BRPs have applied for funding from the UIF in order to be able to pay the April salaries. SA Express was forced into business rescue by the South Gauteng High Court on 6 February 2020 on the application of transport and logistics company Ziegler SA. According to the BRPs, SA Express is facing "a myriad of financial and operational challenges", which have affected the airline's ability to generate any revenue to fund critical operational expenses as they became due. The challenges include "the adverse operational challenges that the company faced in the last months, exacerbated by the impact of the Covid-19 pandemic on the domestic and global airline industry". The challenge to generate cash was further increased by the suspension of operations on 19 March 2020. Non-critical" staff were placed on compulsory leave.
- Read the full original of the report in the above regard by Carin Smith at Fin24
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