BL Premium reports that employees at the subsidiaries of SA Airways (SAA) have called for the flattening of the company’s group structure, saying the airline’s prolonged business rescue programme left the various units that fall under it out in the cold.
Seven unions are scheduled to meet the boards of the three subsidiaries, namely Mango, SAA Technical (SAAT) and Airchefs, when they will propose the flattening of the group structure as they believe the subsidiaries can survive on their own. The unions, including the National Union of Metalworkers of SA (Numsa), the SA Cabin Crew Association (Sacca), the National Transport Movement (NTM) and Solidarity have asked to meet the board chairs of the three subsidiaries to discuss the challenges faced by each entity. Viwe James, representing the unions, said there was a duplication of responsibilities within the SAA Group. Changing the structure of the airline would allow the subsidiaries to run on their own without financial assistance from the group. It would also ensure the challenges faced by SAA would not have a domino effect on the subsidiaries, which previously were able to “function on their own”. Though SAA exited its 16-month-long business rescue process in April, the process worsened the financial challenges of the subsidiaries. SAAT is undergoing a widespread retrenchment process after its revenues plunged 83% over the past year. Airchefs has been unable to operate throughout the pandemic due to Covid-19 regulations restricting serving meals in-flight. The future of Mango as a going concern is uncertain despite it resuming operations after its flights were suspended in April due to non-payment to the Airports Company of SA.
- Read the full original of the report in the above regard by Thando Maeko at BusinessLive (paywall access only)
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