CAPE TOWN - Cash-strapped South African Airways is to restructure its operations as part of a government-backed rescue package.
In a statement, SAA said it has adopted a resolution to place the company into “business rescue” at the earliest opportunity.
“The company is seeking to minimise the destruction of value across its subsidiaries and provide the best prospects for selected activities within the group to continue operating successfully,” the statement added.
SAA said the decision “presents many challenges and uncertainties for its staff” who would be offered support “at this difficult time”.
SAA said it would endeavour to operate a new provisional timetable, details of which would be published shortly. “The company greatly appreciates the continued support of both its customers and partners in the travel industry around the world.”
Under the plan, a “business rescue practitioner” will take control of the airline and help restructure the company, attempting to stabilise its operations and finances.
It’s understood services operated by SAA’s subsidiary airline, Mango, are not affected.