South African Airways suspends operations until restructuring funding is found.
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.
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.
“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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