South African Airways Returns After One Year

South African Airways has returned to operations almost a year after it halted service due to lack of funds. Staff of the company were in a jubilant mood as the airplanes made a return to the skies again, for the first time since September 2020.

The SAA’s financial troubles were worsened by the COVID-19-mediated cash crunch which needed the intervention of the government of the rainbow nation.

A bailout in April ensured SAA left administration and waited another five months to fly again. Local flights between Johannesburg and legislative capital, Cape Town resumed on Thursday with international flights soon expected to connect some African capital cities including Maputo, Lusaka, Accra, Harare and Kinshasa. 

Staff of the company have fared in difficulty as they stayed out of a job for almost a year. The South African government has oerfected strategies to see the company sustainable and secure from future financial shocks.

There are plans in place by the to government sell a majority stake in SA to a local consortium, and a due diligence process and other important works have been mostly completed. 

However, the share purchase agreement is yet to be signed by both parties. 

Some of the sustainable plans orchestrated by the government will see the sale of a 51% stake in SAA. This is also a means to reduce the strain on public finances and cut government losses.  

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