Report shows SAA is not able to save itself – Solidarity

SAA needs R5 billion AGAIN to pay its debts.

The Solidarity Research Institute (SRI) will introduce its report on the state of the SAA at a press conference to be held on Tuesday 8 May, which will show there is no choice but to place the SAA under business rescue.

The trade union recently announced that it would approach the court on 15 May to have the SAA placed under business rescue. “It is clear from SAA’s past that, at the moment, it does not have the ability to successfully implement a turnaround strategy. Business rescue will bring accountability and will ensure that strategies are implemented successfully,” Connie Mulder, head of the Solidarity Research Institute, said.

The report contains an in-depth analysis of the broader financial impact the SAA has on the economy and it contains a discussion of the strategic challenges the carrier is facing. The report also highlights the poor way in which the SAA’s management is implementing the strategy to save the carrier. “Any plan that does not include either partial or full privatisation is strategically not sustainable,” Mulder said.

After the conference the trade union will petition Parliament.