Home Going, going, almost gone: NTM say a ‘new airline’ will replace SAA

Going, going, almost gone: NTM say a ‘new airline’ will replace SAA

The National Transport Movement (NTM) has given the clearest indication yet that it’s all over bar the shouting for South African Airways (SAA). The airline, which had been under business rescue measures for the past few months, could soon cease to exist and be replaced by another state-funded business:

  • As SABC report, it’s understood that a R2.2 billion severance package will be created for departing employees.
  • Current airline staff will be “first in line” to get jobs at this proposed new airline.
  • Several unions are still in negotiations with the government regarding the immediate future of SAA.

SAA set to close down – but what will replace it?

Details of a proposed new airline – and how the gradual death of SAA will pan out – remain sketchy. But NTM president Mashudu Raphetha briefly stated on Wednesday:

“It is a very sad day for the whole of the Republic that SAA is now going to shut down. We are now going to witness the emergence of the new airline.”

Mashudu Raphetha

The organisation are comprehensive in their assessment, and it follows a hammer blow delivered by the finance minister last week. Tito Mboweni had previously suggested that SAA was already on the scrapheap:

“We will need a new national carrier. Minister Gordhan spoke about building a new airline from the ashes of SAA. We must build new towns, renovate our harbours and agriculture boards... Our combined fiscal and monetary policy package is over R800 billion. This is a major fiscal and monetary policy response.”

Tito Mboweni

Another airline bites the dust

The decision comes just 24 hours after SA Express fell into liquidation. The slow, painful death of the SOE may be the first of its kind, but it has come as no surprise. Business Rescue Practitioners (BRPs), Phahlani Mkhombo and Daniel Terblanche, launched an urgent court application on 25 March to provisionally liquidate the airline after they were unable to mitigate its financial losses. 

The Department of Public Works chose not to oppose the ruling, however all parties will still have the opportunity to appeal the decision. A liquidation official will be administered to the case regardless. 



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