Operations of all struggling airlines have been suspended “with immediate effect” by the SAA business rescue practitioners.
Its business rescue practitioners (BRPs) Les Matuson and Siviwe Dongwana made this announcement on Tuesday.
The administrators made it known that state-owned airlines are under “care and maintenance” until funding for a restructuring plan is set in place.
SAA encountered a local form of bankruptcy protection in December after it was faced with heavy financial losses in the past few years.
The Coronavirus further made the situation worse.
It revealed that the government is yet to provide over R10.5 billion to support the restructuring plan which the administrators published in June
Today, they made it known that: “In the interim, the BRPs have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed.”
