- Jul 23, 2003
South African Airways entered bankruptcy in December, and COVID has made things much worse... they're now facing possible liquidation.
South African Airways, which began operations in 1934, has racked up 26 billion rand ($1.4 billion) in losses over the last six years and has depended on a series of state bailouts to keep operating. The grounding of all of its passenger flights, aside from charters to repatriate stranded citizens, due to the coronavirus lockdown have further decimated its revenue stream.
Finance Minister Tito Mboweni has long advocated shutting off funding for the airline, and earlier Tuesday cited the carrier’s closure as a way to save funds as the country deals with the fallout of the coronavirus pandemic. Even before the Covid-19 outbreak ground global travel to a halt, the administrators had cut routes and started consultations with more than 4,700 employees about job losses.
“All options are now blocked to any form of real continuation of the airline,” said Peter Attard Montalto, head of capital markets research at Intellidex. “Basically the only option now is liquidation.”