South African Airways (SAA)
SAA emerges from bankruptcy, resumes flight operations
Embattled South African Airways (SAA) has emerged from over a year-long grounding occasioned by bankruptcy proceedings and taken to the skies again, Thursday, as it flew its first plane since March 2020.
Passengers on the South African Airways (SAA) flight from Johannesburg to Cape Town on Thursday were greeted on their departure by singing and dancing airline staff.
Once Africa’s second largest airline after Ethiopian Airlines, SAA had survived for decades on government bailouts and was shedding routes even before the COVID-19 pandemic struck.
The government agreed in June to sell a 51 percent stake to a group of investors called the Takatso Consortium, opening the way to a potential injection of $200m.
Even after a state bailout of more than $500m and a restructuring of its debt, the airline only emerged from bankruptcy after slashing hundreds of jobs.
In addition to the domestic route that resumed on Thursday, SAA plans to begin regional services next week to Accra, Kinshasa, Lusaka, Harare and Maputo.
Chief Finance Officer Fikile Mhlontlo said this week that the airline’s fleet is down to six planes, from a previous 46.
However, SAA low-cost subsidiary, Mango remains grounded and in bankruptcy proceedings.
According to source, an investigation into corruption at SAA has shown that at least $30 million in recent years had been misappropriated, including through links to irregular contracts:
“So the issues around SAA is one of many examples around State-owned enterprises in South Africa, where widespread corruption has been problematic.”
Some have criticized the relaunch of the airline as an unnecessary ‘prestige project.’
