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Close to the edge of collapse, SAA gets a final chance to continue operation

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Logistics Update Africa
Close to the edge of collapse, SAA gets a final chance to continue operation

December 05, 2019: After a series of unfortunate events, and years of operating losses, South African Airways (SAA) is edging towards a total collapse faster than ever.

"This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets of SAA and help to restructure and reposition the entity into one that is stronger, more sustainable and able to grow and attract an equity partner," he stated as reported by Bloomberg.

If liquidated, SAA will need to cover liabilities of $2.4 to $4.7 billion; however, they would only be able to secure $341 to $409 million by selling their assets, as per reports.

Tellingly, since 2017, the airline has opted to stop releasing annual statements; a year in which net losses quadrupled.

Its finances took a further hit when staff staged a pay strike last month, grounding a number of flights, insurers blacklisting it and causing bookings to be cancelled on a number of others - costing the airline $3.4 million each day.

The business-rescue process at SAA include:

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