SAA says it is hoping to be back in the skies and start flying by July, but the threat of a third wave could prevent those plans.
SAA acting CEO Thomas Kgokolo told the standing committee on appropriations on Friday the business rescue practitioners exited the business, now the executives and the board were in charge of the national carrier.
He said the plan was to start operating from July.
The airline has been grounded since 2019 when it went into business rescue.
Kgogolo said they were asking that R2.7 billion be transferred to SAA subsidiaries including Mango.
He said when the business rescue process got underway the airline had 4 500 employees, but that was slashed to about 1 000 employees following this process.
Most of those who left took voluntary severance packages.
Kgokolo said they were keen to get back to business.
“On the other side as you are aware and as you asked when are we getting back into the skies, the business rescue plan had initially proposed the resumption of flying in about July 2020. However, the impact of Covid-19 and the timing of the receipt of funding to address the plan has resulted in the re-start date.
“We looked at the environment, we looked at where the organisation is and a draft plan, there is a proposal we are looking at July 2021. But, however, this date comes with some complexities chair, the issue of Covid-19 is something we still need to consider. And now the possibility of getting into the third wave that would be a critical factor in us to get into the skies as well,” said Kgokolo.
SAA board chairperson Geoff Qhena said they wanted R2.7bn to be transferred to its subsidiaries including Mango, who have been hit by Covid-19.
Qhena said National Treasury had allocated R10.5bn to SAA, but so far R7.8bn was disbursed.
He said they would like the R2.7bn to be transferred to Mango, SAA Technical and Air Chefs to get a slice of the cake.
He said Covid-19 had an impact on the operations of Mango.
“If you look at Mango, its operations were affected as well. It was against that background that it was clear they also needed support to be able to restructure themselves. How the R2.7bn was allocated, just to confirm the R2.7bn was for subsidiaries,” said Qhena.
“The R2.7bn has not been disbursed yet, which is why we are here. It’s not that it was not approved in the budget in terms of approval processes but it needs to be appropriated to the subsidiaries,” said Qhena.
POLITICAL BUREAU