Airlink loses Supreme Court bid to retrieve R500m from SAA
The Supreme Court of Appeal in Bloemfontein has rejected Airlink’s application to retrieve R510 million in ticket funds held by South African Airways (SAA).
The court has upheld a High Court decision rejecting Airlink’s claim to the ticket revenues collected by SAA on its behalf, following SAA’s entering business rescue in late 2019.
In a statement released by Airlink on Tuesday, the airline says it’s disappointed in the judgment.
“Airlink, the independent and privately-owned airline, notes with disappointment, but respect, the Supreme Court of Appeals decision to dismiss its claim against South African Airways (SAA) with costs.
“While Airlink fully respects today’s Supreme Court of Appeal order dismissing the case, it is nonetheless disappointing and demonstrates that the law is not always just. It has always been Airlink’s firm view that the funds collected by SAA on Airlink’s behalf, was never for SAA to keep or spend,” says Airlink.
The airline accuses SAA of hiding behind the business rescue process.
“SAA has been able to hide behind the legal veil of business rescue, to withhold and consume Airlink’s money, even though it had no legitimate commercial or transactional basis for doing so.”
The dispute is based on revenues collected from November 2019 up to the point when SAA entered business rescue on 5 December 2019.
Airlink says it will study the judgment and consider its options.
“In the meantime, Airlink is focused on rebuilding its business which was ravaged by SAA’s default and the national lockdown regulations that decimated the air travel and tourism industries.”
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