Unveil rescue plan now to save ailing airline

THERE is a lot that has been written about SAA and the business rescue practitioners lately.

I am starting to feel that the rescue process is too onerous, as there has been no plan since their appointment.

The business rescue practitioners have requested a further extension to be able to adequately provide a comprehensive plan. Considering the above, the practitioners have requested three extensions in the past.

Monday, June 8, was the day when the business rescue practitioners were expected to unveil the long-awaited business rescue plan. However, on Monday the practitioners requested another delay until June 15.

It’s critical that the practitioners ultimately present their plan as there is a lot that is hanging on this plan.

Various stakeholders including employees are profoundly impacted by this continued delay. The sooner the plan is presented, the better for everyone involved in this process.

I really expect this day not to be moved again. Based on recent media reports, it is expected that the decision will be to retain the airline.

Why is the unveiling of this plan critically important? Because the sooner an economic decision is made and communicated to operate the airline, the more this will benefit the airline in the long run. Because of the Covid-19 pandemic, the airline industry’s operational start date has been delayed.

It is equally critical to note that this is an extremely competitive industry. Rightly so, the margins are low, so a delayed start will not be a brilliant idea for this airline. The most favourable time to re-enter the industry would be right now.

This will also enable the state airline to operate efficiently as a profitable business and to capture a sizeable market share of the industry.

I don’t think the rescued entity would want to be a follower, but would rather want to dominate the industry. The rescue plan should be unveiled now, rather than later, to remain competitive.

NYANISO QWESHA | Wynberg