Improving the governing and financial structure of the South African Airlines (SAA) is the only workable option to guarantee the future operation of the deeply-indebted national carrier, South African President Cyril Ramaphosa said on Monday
MOSCOW (Pakistan Point News / Sputnik - 09th December, 2019) Improving the governing and financial structure of the South African Airlines (SAA) is the only workable option to guarantee the future operation of the deeply-indebted national carrier, South African President Cyril Ramaphosa said on Monday.In mid-November, SAA workers went on strike against the airline's plans to cut over 900 jobs as part of a restructuring program amid the carrier's long-standing financial crisis. The workers demanded the resignation of the entire SAA management over "corruption and failure to perform their responsibilities." Despite this, restructuring measures were launched in early December to allow the nation's biggest airline to continue operating.
"This is why we supported the decision last week to place South African Airways into business rescue. There was no other viable and financially workable option for a credible future for the airline. The financial crisis had become so grave that the only way to secure its survival was to take this extraordinary measure," the South African leader said in a press release.
Ramaphosa added that, while the restructuring was ongoing, the carrier would continue to operate with the support of lenders, government, management and workers. He further stated that this urgent measure was not the preferred option for fixing state-owned enterprises.
South African Airways is the nation's flag carrier and links over 40 local and international destinations across the world. It has been suffering losses since 2011.
