SA Express has released a statement which asserts that South African Airways (SAA) must pay the outstanding revenues which it owes to the airline.
“Over the last two months SA Express has been battling to retrieve monies owed by SAA,” SA Express said.
“The national carrier failed to pay revenues owed to SA Express as a consequence of SAA’s business rescue status.”
“Now that SAA has received funds, the regional airline trusts that finally paying these revenues will be prioritised,” the airline added.
The business rescue practitioners of SAA announced yesterday that they will receive a total of R3.5 billion from the Development Bank of South Africa to aid in the airline’s turnaround strategy.
The advancement of these funds follows the business rescue process which began on 5 December 2019, with the local commercial banks providing the initial post commencement funding (PCF) of R2 billion in addition to the existing exposures to SAA.
Two months of non-payment
SA Express said it is entitled to outstanding revenues as SAA purely acts as an agent for SA Express, and that it has been attempting to resolve this issue with the SAA business rescue practitioners over the past two months.
The airline said the terms of its commercial arrangement with SAA were clear, and its entitlement to outstanding revenue was in line with the legal opinion it received.
“The revenue uplifted by SAA is property belonging to SA Express and does not form part of property belonging to SAA,” SA Express said.
“As of 7 December 2019, SAA has been in unlawful possession of the collected revenue and has no right to retain the revenue collected.”
SA Express said that although it has been through many challenges – including a halt in operations in 2018 and a recovery effort following detrimental corruption – it hopes to resolve this issue and move forward to grow its business.