South African Airways asks creditors for extension to business rescue plan deadline

Administrators at South African Airways (SAA) have asked creditors to approve an extension until June 8 for the publication of a business rescue plan, which would be the first stage of a miraculous recovery by the teetering airline.

The administrators said in a letter dated May 28 that the rescue plan was ready for publication but further consultation with affected parties was required. The plan was due to be published today.

Meanwhile, SAA earlier this week said it aims to resume domestic flights between Johannesburg and Cape Town from mid-June, as the South African government announced the easing of lockdown restrictions.

“SAA is committed to restart further operations on an incremental basis, and will regularly provide updates on progress,” said the national carrier in a statement.

The company added that it had decided to extend cancellations of all regional and intercontinental flights until the end of June.

However, the resumption of domestic flights is a big positive for the cash-strapped airline, which offered severance deals to its 4,700 employees in April after failing to secure a further funding bailout from the government.

@ABNetworkOnline