Dept of public enterprises 'concerned' by plans to ground SA Express | Fin24
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Dept of public enterprises 'concerned' by plans to ground SA Express

Mar 06 2020 14:11
Khulekani Magubane

The Department of Public Enterprises says it is concerned by plans to ground state-owned airline SA Express. 

In a statement on Friday afternoon, the department said the airline's business rescue practitioners are planning to ground it without first presenting a business case for its stabilisation. 

SA Express was placed in business rescue by an order of the court in early February, about two months after SAA entered voluntary business rescue. While SA Express and SAA are both state-owned airlines, they are distinct businesses.

The department said it met with the airline's business rescue practitioners, Daniel Terblanche and Phahlani Mkhombo, earlier in the week to hear their business rescue plan. 

'Wholly inadequate'

"The department informed the practitioners that the business rescue plan presented was wholly inadequate and did not include key commercial elements that would enable the department to make a business case for the provision of post commencement finance to the National Treasury," the statement said.

The department said it had urged the BRPs to discuss their plan with unions, the SA Express board and management. 

Approached for comment, a spokesperson for SA Express asked that a query be sent via email. 

* More to come 



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