The South African government is not able to put cash into South African Airlines, following the SAA’s decision to go into voluntary administration, according to a statement from the country’s Ministry of Public Enterprises (MPE).
A statement posted on the MPE’s website on Saturday, said a team of government leaders and senior officials held a meeting with union leaders about the future of South African Airways SOC (SAA) via video conference.
The meeting was chaired by Public Enterprises Minister Pravin Gordhan, chair of the Interministerial Committee on South African Airways (IMC), who made clear that the government would not providing cash for SAA.
“The IMC reiterated the reality that Government is not in a position to provide more capital to SAA, and that all parties need to commit to a creative solution for SAA to avoid a scenario where the business rescue is deemed to have failed,” MPE said in a statement.