SAA: Business rescue bosses hit-back after Ramaphosa's criticism

President Cyril Ramaphosa / Image by GCIS

The team in charge of trimming the fat at South African Airways (SAA) have issued a statement on Sunday, in response to comments President Cyril Ramaphosa made about some of their recent decisions. We think it’s fair to say both sides are at loggerheads over this matter.

Cyril Ramaphosa on SAA

On Friday, Ramaphosa let slip that he wasn’t happy with the business rescue practitioners (BRP). On his way to Ethiopia, he told the media that his administration doesn’t agree with SAA’s planned flight cancellations.

“Government is not in agreement with the BRPs about the decision to cancel certain flights. We as government are saying we need to sit down with the BRPs and discuss the matter.” 

Cyril RamaphosaPractitioners fire back

It was announced in the middle of last week that SAA would cease operations in a number of South African cities, as per the plans made by the BRP. Only Johannesburg and Cape Town will host the national carrier at the start of March, abandoning services to Durban, Port Elizabeth and East London.

In their statement – issued earlier in the day – the BRP doubled-down on their proposals, saying that they were merely “looking out for the best interests of SAA”. However, they did confirm that the panel is open to further discussions on the matter – but cutting these flights is an integral part of their business plan.

“The decisions we took and informed the public of this week were in the best interests of SAA. They are intended to make the airline commercially sustainable, free from the requirement of further government funding.”

“We recognise the concerns raised, especially with the domestic routes. We will continue to engage with stakeholders, with a commitment to include inputs into the final business plan which will be published later this month.”

BRP team on SAAYou can read the full BRP statement here:

Meanwhile in Kempton Park, the Business Rescue team has issued a statement…#SAA pic.twitter.com/cEGABfUCya

— Khaya Sithole (@CoruscaKhaya) February 9, 2020