The business rescue practitioners for SAA have taken a decision to suspend all the airline’s operations with immediate effect.
In a notice to interested parties on Tuesday September 29, the BRPs said they are pursuing a process to put the airline ‘under care and maintenance” until funding discussions are completed.
This comes after failure to secure all the required funding.
While the the BRPs said in their notice there has been “certain progress” in securing funding, no money has flowed into the company since they warned earlier this month that funds were “near depletion”.
“The BRPs and government have engaged with certain funders that have indicated a willingness to provide a portion of the funding required for the implementation of the Business Rescue Plan,” the notice reads. “The BRPs are engaging with Government in relation to the securing of the remaining funding that is required to fully implement the Business Rescue Plan and what the implications would be for the Company if it receives a portion of the required funding.”
Louise Brugman, spokesperson for the BRPs, told Tourism Update that existing cargo and repatriation flights will still be operated, but no new flights would be scheduled.
Brugman could not comment on the portion of funding that lenders had committed to, and also noted that “nothing has been signed”.
SAA and Mango Airlines have been unable to pay for services rendered by SAA Technical (SAAT). This resulted in SAAT cutting off services to the two airlines on Saturday September 26. Monday saw SAAT workers downing tools and striking on Monday September 28, after being informed they would only receive 25% of their salaries.
Mango has been able to continue flying by leasing aircraft.