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Solidarity wants SAA to be put under business rescue

South African Airways SAA website 2 - Solidarity wants SAA to be put under business rescue

Solidarity has filed a case on Thursday asking a court to subject the distressed state-owned airline South African Airways (SAA) to a business rescue, with the aim of restoring it to profitability.

Solidarity, which mostly represents white, Afrikaans-speaking employees, said it would “mean that the court can appoint a business rescue practitioner with comprehensive powers to rescue the airline.”

A crippling six-day strike in the past week has pushed South African Airways to the brink of financial collapse.

Such a rescue would hand over control to a business rescue practitioner who then tries to restore the company in order to avoid liquidation.

Meanwhile, SAA has said it would suspend all flights between Johannesburg and Hong Kong from Saturday up to and including December 14 to curb significant financial losses on the route.

SAA, which is running out of cash because of the week-long strike over wages and job cuts, said the losses had been exacerbated by political tensions in Hong Kong.

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