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SAA rescue plan is just 'throwing the problem back'

17 June 2020 6:55 PM
Tags:
SAA
Comair challenges SAA loan
SAA business rescue
SAA rescue plan

The long-anticipated rescue plan was finally released on Tuesday night.

A 26bn price tag.

Under the terms of the SAA rescue plan, government will have to raise more than R10 billion, which covers creditors who have funded the airline since it went into business rescue in December, as well as employee severance packages.

The R10 billion extra proposed by the practitioners excludes about R16.4bn in historic government-guaranteed debt already allocated in previous budgets.

In the view of economist Peter Attard Montalto, the rescue plan proposes a broadly similar airline in terms of routes to the current embattled one, with government having to provide the "new" airline with new money.

The question here is, is this actually solution and what is this a solution for?

Peter Attard Montalto – Intellidex

Basically I think this plan is the business rescue practitioners throwing the problem back...

Peter Attard Montalto – Intellidex

There is clearly some space to have a carrier in some form doing something - the question is - what is it meant to be doing?

Peter Attard Montalto – Intellidex

Really I think we have to be very critical if such a big unchanged airline is viable.

Peter Attard Montalto – Intellidex
Picture: 123rf.

Listen to the interview below.

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17 June 2020 6:55 PM
Tags:
SAA
Comair challenges SAA loan
SAA business rescue
SAA rescue plan

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