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Ramaphosa objects to SAA flight route cuts
South African President Cyril Ramaphosa said the government disagrees with a decision by administrators of the country’s state-owned airline to cut almost all domestic routes as part of a turnaround plan.
South African Airways is “an economic enabler, it enables people to move around the country,” he told broadcaster eNCA on Friday. “We want to find out what the rationale is and we want to have a discussion with them.”
The government placed loss-making SAA into a local form of bankruptcy protection in December to try and end a cycle of regular state bailouts and battles with creditors. Administrators led by Johannesburg-based Matuson & Associates said this week the airline would stop flying to nine international cities, including Hong Kong and Sao Paulo, and cease all local services except those between Johannesburg and Cape Town.
[Bloomberg]
South African President Cyril Ramaphosa said the government disagrees with a decision by administrators of the country’s state-owned airline to cut almost all domestic routes as part of a turnaround plan.
South African Airways is “an economic enabler, it enables people to move around the country,” he told broadcaster eNCA on Friday. “We want to find out what the rationale is and we want to have a discussion with them.”
The government placed loss-making SAA into a local form of bankruptcy protection in December to try and end a cycle of regular state bailouts and battles with creditors. Administrators led by Johannesburg-based Matuson & Associates said this week the airline would stop flying to nine international cities, including Hong Kong and Sao Paulo, and cease all local services except those between Johannesburg and Cape Town.
[Bloomberg]