South Africa Public Enterprise, Labour Union Working Together on New Airline Plan | AfriTV Online

The government of South Africa in conjunction with the labor union are synergizing on a business plan in line with a brand new national carrier, aimed at substituting the embattled South African Airways. According to the Ministry of Public...

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South Africa Public Enterprise, Labour Union Working Together on New Airline Plan

Published by: Tobiloba Chelsea
06/04/2020 12:11 PM

The government of South Africa in conjunction with the labor union are synergizing on a business plan in line with a brand new national carrier, aimed at substituting the embattled South African Airways.

 

According to the Ministry of Public Enterprise, The new national carrier will receive funding via different options that is, through the sale of non-core assets, partners of strategic equity, and funders. Both parties are of the view that the state must constantly perform a role. 

 

In light of the state funding being rejected in April, the administration operating the South African Airlines, suggested firing all employees to ward off liquidation. However, Pravin Gordhan, the Public Enterprises Minister sturdily demurred such a plan and publically declared his future goal to create a new airline. 

 

The administration is currently seeking 21 billion rands (US $1.2 billion) for the repayment of debts after which all operations will be resumed once the COVID-19 travel ban has been lifted.  

 

The Ministry further stated: it is important to erect a strong and robust leadership partnership, for the purpose of finding solutions, as well as establishing the foundation of a brand new airline”. 

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