This archive report was first published on 20 November 2019.
South African Airways (SAA) is on the brink of collapse after talks between the airline and striking unions broke down, leaving the state-run carrier at risk of liquidation without a government guarantee to secure bank funding.
As the strike enters its sixth day, the airline's financial situation is dire. Initially, the airline estimated the strike was costing 50 million rand ($3.4 million) a day, but this figure has decreased as some cancelled flights resumed.
Board member Martin Kingston warned that the airline had no cash in the bank and the strike was accelerating its demise. He stated, 'At the moment, Rome is burning. We don’t have the time or the luxury to consider industrial action.'
Unless the airline secures guarantees from the national treasury, the board will recommend to the government that SAA be placed in liquidation, Kingston said. He added, 'We need to be confident that we have the financial wherewithal to trade for the next 12 months on a solvent basis. That is not currently the case.'
Kingston also stated that it would become apparent in the next month whether SAA could trade its way out of the current situation.
