Jubilant SAA staff at the country’s biggest airport broke into song and dance on Thursday as the airline took to the skies for the first time in a year.
Mango Airlines temporarily suspended all flights and services on Tuesday until further notice due to outstanding payments to Air Traffic Navigation Services, acting CEO William Ndlovu said.
South African Airways subsidiary Mango Airlines will enter into business rescue, SAA’s interim CEO, Thomas Kgokolo, told the eNCA television news channel on Monday.
When government announced it was bringing in outside shareholders to take a majority holding in South African Airways, there was a lot of chatter that it was now following the “Telkom model”. By Larry Claasen.
South Africa has agreed to sell a majority stake in South African Airways, ridding the government of an entity that has long been a drain on state finances.
South African Airways on Friday exited business rescue after 17 months. SAA was placed under administration in December 2019, and its longstanding financial woes worsened during the Covid-19 pandemic.
Eskom is expected to complete its unbundling into three divisions by December 2022, according to national treasury.
Government has told administrators of South African Airways that there is a “clear cabinet commitment” to provide the state airline with R10.5-billion of funds.
South Africa is considering an independent board for its ailing national airline, with a shareholder structure similar to that of part state-owned telecoms firm Telkom, a senior government minister said.
Government plans to retain a minority shareholding in South African Airways while ceding management control to its investors, an official said.