The public enterprises department has said the work to save South African Airways (SAA) has only just begun.
The department welcomed the announcement by SAA business rescue practitioners that the airline is no longer under business rescue.
The national carrier was placed in business rescue back in December 2019 in a bid to save the bankrupt national carrier from total collapse.
The COVID-19 pandemic added to its financial woes, forcing it to ground all its aircraft, while its subsidiaries, including Mango Airlines, faced uncertainty.
Business rescue practitioners say the airline is now solvent and that its operations have been handed back to its board.
However, the department’s Richard Mantu said an interim business plan to sustain the operations was still being finalised.
“The (business rescue practitioners) are handing a solvent business over to the entering board, however this doesn’t mean the (work is done). The board will be developing and implementing an interim business plan to sustain the operations, while a strategic equity partnership is being finalised. This will enable capital and much-needed technical and commercial expertise to be brought in to ensure a competitive carrier emerges.”
