A South African court on Tuesday placed a state airline with mainly domestic routes up for provisional liquidation, APA has learnt.
The Johannesburg High Court granted the provisional liquidation order after South African Express was in February placed under a form of bankruptcy protection known as business rescue.
Responding to the court order, the airline said that all non-critical South African Express staff would be placed on compulsory leave for now.
“The airline will utilise this period to review its current network and streamline operations for improved efficiency.
“South Africa Express will provide communication on any additional developments in due course,” the airline said.
The South African Express joined its sister airline, South African Airways, last month in suspending its services due to coronavirus pandemic.
The suspension also saw South African Express’ interim chief executive Siza Mzimela, leaving the airline after just 18 months “to pursue other options”.
She had been tasked with breathing life into the financially ailing outfit for the period. But her mission ended when the government declined to fund the cash-strapped company back to sustainability.
NM/jn/APA