South African Airways has informed its employees that it will pay January salaries on the scheduled payment dates.
Spokesperson for SAA’s business rescue practitioners, Louise Brugman made the announcement, although there is still no sign of the R2bn promised by government.
According to Brugman, the deadline for the business rescue practitioners to submit the airline’s rescue plan is before or at the end of February.
Head of the union Solidarity’s legal department, Anton van der Bijl, expresses the union’s concern about SAA’s ability to pay salaries this month.
SAA has been placed under business rescue since December 2019. At the time, government and creditors jointly pledged 4 billion Rand to the process as post-commencement finance (PCF). The private sector has already lent SAA R2bn in post-business rescue funding and government had promised to provide another R2bn. Last week, Finance Minister Tito Mboweni announced that the Treasury is still trying to source additional financing.