Administrators in charge of South African Airways (SAA) said on Tuesday that they were suspending all operations and putting the struggling state-owned airline under “care and maintenance” until funding for a restructuring plan was found, Reuters reported.
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SAA entered a local form of bankruptcy protection in December, after almost a decade of financial losses, and its longstanding woes have been exacerbated by the COVID-19 pandemic.
The administrators published a restructuring plan in June, but the government is yet to come up with the more than 10 billion rand ($590.7 million) needed for it work, despite committing to do so.
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“The BRPs (administrators) have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed,” the administrators said in a notice to affected parties.
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