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Fin24 reports that Department of Public Enterprises (DPE) director-general Kgathatso Tlhakudi was on Wednesday unable to advise MPs exactly how the funds made available by Treasury for subsidiaries of SA Airways (SAA) would be spent, but said the aim was to make the ailing companies sustainable again.
The subsidiaries have received just short of R1 billion of a total of R2.7 billion approved by Parliament for re-allocation from the R10.5 billion earmarked for SAA's business rescue plan. Some R784 million has been allocated for SAA Technical (SAAT), R107 million for Air Chefs and R100 million for Mango. Low-cost airline Mango recently went into business rescue, while retrenchment processes are under way at SAAT and Air Chefs. For Mango, R100 million in funding for the business rescue process has been received from government. Employees’ salaries for July and August are in the process of being paid by the business rescue practitioner. "We hope there will be a meeting of minds between managements and unions regarding the restructuring of SAA's subsidiaries in a sustainable way and align them to current market demand,” said Tlhakudi. SAA's interim CEO Thomas Kgokolo commented that the financial challenges of SAA's subsidiaries would likely continue due to the impact of the Covid-19 pandemic on the aviation industry. He added: "We do expect, however, that as SAA starts flying again, business at SAAT and Air Chefs will start picking up too.”
- Read the full original of the report in the above regard by Carin Smith at Fin24
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