South African Airways cancels flights in fight for survival
SEE ALSO :Ailing airlines stare at Sh20b in lossesThe airline is one of several South African state entities, including power company Eskom, mired in financial crisis after nearly a decade of mismanagement. State companies’ financial problems are seen as one of the biggest threats to Africa’s most industrialised economy and have helped push the country’s credit rating to the brink of junk status. SAA said flight cancellations on the domestic and Munich routes were planned until Friday. A booking system used by travel agents showed that 19 SAA flights had been cancelled so far, according to a representative of a local travel agent. The airline’s business rescue practitioners held talks with the government at the weekend to try to find a solution on the promised funding, but failed to reach a breakthrough.
SEE ALSO :Party pushes for SAA to stay nationalOn Sunday, the public enterprises ministry said it was still talking with the National Treasury to raise funds for SAA. Last week, a senior trade union official said SAA might have to suspend some flights and delay salary payments if the government didn’t come up with a plan to provide the 2 billion rand soon.
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