EDITORIAL: SAA is in an intractable bind
The restructuring was started too late and there is not enough time to make changes before the money runs out
The business rescue of SAA is turning into a slow plane crash. Having done next to nothing to cut costs for the first two months of the rescue process, when the business rescue practitioners finally took strong steps last week to cancel domestic flights they were reprimanded by no less than the president himself.
Can it really be that President Cyril Ramaphosa did not realise that when the state handed over the company to the business rescue practitioners it relinquished control of its affairs? Or that the government really expected that no drastic changes would have to be made? Since there is abundant evidence of political influence in the rescue process before this intervention it could be, at best, that the legal constraints of business rescue were not well understood in the government. At worst, though, it was an attempt at intimidation of the business rescue practitioners...
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