While the government has insisted that it had no plans to disband the state-owned South African Airways, the unleasing of the troubled airline’s 17 aircraft tells another story, APA has learnt.
This follows Saturday’s press reports confirming that the SAA’s government-appointed Business Rescue Practitioners have returned 17 leased aircraft to its owners.
The SAA rescue practitioners are working on a draft business plan, which includes terminating leases on nearly half the airline’s 40 leased aircraft, and renegotiating others, the reports said.
The cash-strapped carrier is in the middle of a significant restructuring process that would see it emerge as a new airline under government ownership, the reports added.
South African Flyer Magazine Editor Guy Leitch said the SAA’s return of its leased aircraft was a step in the right direction.
“It seems the lessors would rather have the aircraft in their own possession than risk having them perhaps stuck in an insolvent airline.
“It’s nice to see the SAA’s fleet easily reduced like this. It was a real concern that the business rescue process would be left with very expensive leases,” Leitch said.
SAA and its equally-troubled sister airline, South African Express, are facing an uncertain future – with their nearly combined 10,000 workers at greater risk of losing their jobs if the business rescuers’ plan fails to take off the ground.
NM/as/APA