Moneyweb reports that state-owned aircraft maintenance company SAA Technical (SAAT) has suffered a steep decline in its monthly revenue as the SA Airways (SAA) business rescue combined with the Covid-19 pandemic led to a drastic reduction in passenger numbers.

In March 2021, SAAT’s revenue was down 83% to R43 million compared to the same period last year when the company recorded around R246 million in revenue. SAA accounted for only R9 million in revenue for its subsidiary in March compared to R150 million during the same month last year. At the end of April, SAAT was responsible for maintenance and repair services for 34 aircraft fleets, while prior to the outbreak of the pandemic it had provided services to 86 fleets. In a notice sent to labour unions Numsa, Satawu, Ausa and Solidarity in April, the company’s interim CEO Terrance Naidoo said the reduction in the number of aircraft in SAA’s fleet and those of other airlines meant there was insufficient work for SAAT’s employees. He added that “SAAT has no choice but to seriously consider a reorganisation/reduction in the dedicated lines for wide body [aircraft] work.” SAAT informed its employees at the end of April that it would begin a Section 189 process that would see its staff complement of 2,019 employees reduced to 1,203. The retrenchment process is expected to conclude in June. The company says it will propose severance packages as part of the process. Numsa, Sacca and Solidarity previously indicated that that there was still no clarity on the payment of salaries at SAAT for May and June.

• Read the full original of the detailed report in the above regard by Thando Maeko at Moneyweb

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