'SAA cannot continue in its current form' - Gordhan

The Minister of Public Enterprises, Pravin Gordhan says the strike by unions at SAA "caused immense damage to the reputation, operations, and the deterioration of the finances of SAA."

In a statement released on Sunday, Gordhan says  SAA, therefore, cannot continue in its current form.

"The airline group will now go through a radical restructuring process which will ensure its financial and operational sustainability. There is no other way forward."

Unions embarked on a week-long strike in November, forcing the airline to cancel all of its flights for some time. 

The airline was in dire financial straights before the strike though and only managed to pay 50% of its November wages on the due date. 

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Last week Gordhan said SAA's financial position has deteriorated substantially, leading to travel agents and insurers deciding to no longer do business with the airline. 

"The SA government is committed to a viable, sustainable, profitable national airline. In pursuance of this, various options are being explored," said Gordhan. 

He notes that there have been "intense discussions" with lenders over the past few days to secure the necessary funds to cover the operational and structural transition over the next few months. 

"It is our collective responsibility as South Africans to support SAA in its efforts to restore sales confidence among its customer base and rebuild revenues in the shortest possible time," said Gordhan. 

He assured customers that they could buy SAA tickets with confidence.  

"SAA is determined to remain open for business. Management is also committed to ensuring financial sustainability going forward," said Gordhan. 

He added that the SAA board and management will intensify its marketing campaigns to rebuild confidence in the airline and will take bold initiatives to increase its market share.