This archive report was first published on 14 July 2020.
South African Airways (SAA), the continent's second-largest airline, has been struggling to stay afloat due to years of mismanagement and debt.
On December 2020, the airline was placed under a state-approved rescue plan in an effort to save it from collapse.
According to the Department of Public Enterprises, 86% of creditors voted to support the business rescue plan for the airline.
The government believes that the decision is a better outcome for creditors and SAA employees than liquidation.
However, the opposition Democratic Alliance has expressed its opposition to the plan, claiming that taxpayers will have to fork out an additional 16.6 billion rand to fund the project.
Under the plan, 1,000 SAA employees will be retained, while another 1,000 will be furloughed, and at least 2,700 workers will be laid off.
The rescue plan is expected to cost around 10 billion rand (approximately $600 million).
SAA has a fleet of over 50 aircraft flying to domestic and international destinations, but has failed to make a profit for over a decade and has relied on government bailouts to stay afloat.
