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SAA dismiss claims of liquidation

South African Airways (SAA) has moved to dispel reports it plans to dispose of its assets or that the national carrier will be liquidated.

While the airline has repeatedly made it clear it’s in financial distress and won’t break even until at least 2021, managers say they’re working to turn around the company.

Last week, Public Enterprises Minister Pravin Gordhan informed Parliament the airline won’t make next week’s deadline to table its annual results.

But he did not provide reasons for the delay.

The airline’s new management has made no secret about the fact that it will take at least three years to turn around the company.

It also says it needs at least R21.7 billion over that time to implement its turnaround strategy.

But it says it’s on track to implement this strategy and that its first-quarter results bear this out.

The airline says it’s honouring all its obligations and will not be filing for bankruptcy.

SAA’s Tlali Tlali says: “The results show that the airline is on track with this turnaround strategy and that the company is ahead of its plan based on its trading performance. This quarter one performance injects a new sense of confidence among all at SAA.”

He says the board has only considered as an option, selling off entities and assets, but that no decisions to this effect have been taken.

Source – EWN

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