South African Airways’ newly revamped airline is now unlikely to return to the skies until July, despite The Department of Public Enterprises saying that it would be up and running by April 2021. In light of several ongoing issues that still need resolving, it’s looking increasingly unlikely that everything will be resolved by spring.

The drawn-out business rescue package, which has been ongoing since 2019, shows no signs of coming to an end anytime soon due to many unresolved issues. Promised funding has failed to materialize while labor disputes and how the airline intends to compete in the South African marketplace have still not been answered.

Last year, it was announced in October that the former national flag carrier of South Africa would receive government funding to the tune of R10.5bn ($684m). The money was supposed to be delivered so that the business rescue practitioners could implement their plan for the airline.

So far, only R1.5bn has been forthcoming. because the government and the business rescue practitioners disagree with each other as to how the money should be distributed.

While many South African Airways employees accepted severance packages that included three months’ salaries because of the COVID-19 lockdown, three of the airlines’ employee unions have not accepted what the business rescue practitioners are offering.

The South African Cabin Crew Association (SACCA) and South African Airways Pilots’ Association (SAAPA), along with The National Union of Metalworkers of South Africa (NUMSA), have rejected what has been put on the table.

SOURCE: Simple Flying