The SAA’s business rescuers said on Wednesday that they did not have enough funds to pay their employees’ salaries for May. Trade union Numsa also complains that employees of Comair’s salaries for the month have not yet been paid.
SAA business rescuers Les Matuson and Siviwe Dongwana say a leadership forum consisting of the Department of Public Enterprises and all the unions of SAA has decided to cut salaries this month for lack of funding. The airline also does not have enough money to pay certain business rescue expenses.
Matuson and Dongwana argue that the lack of funding is hampering the business rescue process. They also say they have not yet been able to finalize the business rescue plan because of the impact of the Covid-19 pandemic on the country and the economy. The plan may be published on Friday.
The business rescuers managed to cut the airline’s expenses by R500m a month. About R2 billion in spending per month continued to swallow the most recent lifeline within the five months of business rescue. The airline has been in business rescue since December last year.
From the annual financial statements from 2017 to 2019, SAA’s expenditure amounts to at least R30 billion per year. This is R2 billion of expenditure per month.