Browsing: SAA Rescue Team

South African Airways (SAA), one of Africa’s iconic airline, which currently operating under-loss, could resort in cutting-routes to save the state-owned flag carrier, SAA rescue team revealed.

Several news outlets, including Bloomberg, noted that SAA administrators have defended their decision to cut-routes, even after several objections from South African President Cyril Ramaphosa, the government and labor unions.

According to a report by Reuters, under South African company law, the business rescue team is entitled to take decisions that are deemed necessary to turn a distressed company around, independently of government. In theory, it could ignore the government’s objections.

Bloomberg reported that South African Airways will halt service to nine international cities, including Hong Kong and Sao Paulo, and cease all local services except those between Johannesburg and Cape Town.

The move is “in the best interests of SAA,” joint administrators Les Matuson and Siviwe Dongwana said in an emailed statement …