SAA battles force Pravin Gordhan to take action, details to come in the next week

The Department of Public Enterprises says the recent strike at South African Airways (SAA), which led to all flights begin cancelled by the airline for a number of days,  has resulted in "a sudden deterioration of SAA's financial position."

In a statement issued on Wednesday afternoon, the Minister of Public Enterprises, Pravin Gordhan, says his Department is working together with SAA "to urgently formulate immediate actions that will be required to provide support to enable SAA to carry on its business."

However, the statement notes SAA cannot continue "as is". 

The South African Cabin Crew Association (Sacca) said that they only received half of their salaries this week. 

This after SAA announced last week it will not be able to fulfil salary obligations to employees for November.

ALSO READ: SAA woes deepen as it’s unable to pay salaries

Sacca, together with the National Union of Metalworkers of South Africa (Numsa), embarked on a week-long strike in November which led to a wage agreement of being signed through the intervention of the CCMA. 

The Department of Public Enterprises says government efforts, under the direction of Gordhan, are focused on ensuring that:

- The airline is stabilised in the short term and has the necessary support from all stakeholders ;

- Governance and leadership issues are being addressed including the process of appointing an effective Management Team; and

- The airline returns to a stronger financial footing in the medium to longer term. 

"None of this can be achieved without the necessary contributions by all the key role players in the airline," it maintains.  

"The actions being undertaken by the Minister include involving relevant stakeholders so that they can participate in the support initiative."

Further details are expected to be announced over the next week.