What's Hot?
Court Orders Oxlade To Pay ₦5m Indemnity Over...
Artists gearing up for the Harlem fine arts...
International tourist arrivals doubled in 2022: UN
Amoako Boafo’s Launch of Ghana Residency Was a...
Morocco: National Finery Museum Reopens to Critical Aclaim
Five years after, Lagos Inaugurates Randle Centre for...
The future of global music is African
CAA Signs ‘Heroes’ Actor Jimmy Jean-Louis
Philly filmmaker Walé Oyéjidé captures the beauty of...
Rema’s ‘Calm Down’ Becomes Most Watched Nigerian Music...
The Culture Newspaper
  • Home
  • Arts & Exhibitions
  • Culture & Festivals
    • Culture Africana
    • Culture People
  • Fashion & Lifestyle
    • Music, Movies & More
  • News
    • Travel News
  • Opinion
    • Reviews (The Critics)
  • TCN Literati
  • Tourism & Hospitality
World Culture

South Africa to replace SAA with ‘new national carrier’

by The Culture Newspaper May 3, 2020
by The Culture Newspaper May 3, 2020

South Africa´s cash-strapped national carrier will be replaced by a new airline after years of mismanagement and debt, the government said on Friday, as plans for its rescue have been marred by the coronavirus outbreak.

South African Airways (SAA) was placed under a state-approved turnaround plan in December as a last-ditch resort to save the company from total collapse.

All its flights have been grounded since South Africa closed its borders and went into a five-week nationwide lockdown in March to curb the spread of COVID-19.

Last month, the government turned down a request for 10 billion rand ($531 million) of extra funding by SAA´s business administrators, claiming resources had been stretched by the pandemic.

The ministry of public enterprises on Friday said a “new and bold approach” would be required for South Africa to maintain a competitive airlift capacity after the “fog of economic uncertainty” caused by coronavirus.

“The creation of a new, dynamic airline, with the correct corporate structure… will allow for the new SAA to compete in the post COVID-19 world,” said the ministry in a statement.

“The new national carrier will be well positioned to take to the skies again and contribute to the South African and African economy.”

No clear timeline was given for the creation of the “new restructured airline” that will involve both public and private participation. According to the ministry, it will be funded by a range of parties that will allow the state to “continue to play a key role”.

SAA employs more than 5,000 workers and is Africa´s second-largest airline after Ethiopian Airlines.

Like most South African state-owned enterprises (SOEs), it has failed to make a profit for more than a decade and survives on government bailouts.

“The transition to the new airline may require sacrifices,” the statement said, adding that employees “may be displaced”.

To date South Africa has recorded at least 5,647 coronavirus cases — the highest in Africa — including 103 deaths.

Some confinement measures were lifted on Friday and economic activity is slowly beginning to resume in certain sectors.

But Transport Minister Fikile Mbalula on Friday said it was still too early to think of ending air travel restrictions.

0
FacebookTwitterPinterestLinkedinWhatsappEmail
The Culture Newspaper

previous post
Alleviate the pains, create a space and dance
next post
Furloughed Musicians and A New Digital Frontier: Performing Arts in the COVID-19 Shutdown

You may also like

CAA Signs ‘Heroes’ Actor Jimmy Jean-Louis

January 30, 2023

Philly filmmaker Walé Oyéjidé captures the beauty of...

January 30, 2023

‘The Woman King’ Wins Best Picture at African...

January 18, 2023

Jahman @ 60: Salute To A Boss, Buddy

January 15, 2023

Papa Ajasco’ Actor Femi Ogunrombi Is Dead

January 15, 2023

Lisa Marie Presley wrote about grief in her...

January 15, 2023

Pakistan’s Trailblazing Cannes Winner & International Oscar Hopeful...

January 7, 2023

Is the diaspora now about rubbishing those at...

January 7, 2023

Burna Boy, Rema, Ayra Starr Make Obama’s 2022...

December 25, 2022

12 Countries That Produce the Best Movies in...

December 22, 2022

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

Recent Posts

  • Court Orders Oxlade To Pay ₦5m Indemnity Over Leaked Sex Tape
  • Artists gearing up for the Harlem fine arts show 15th anniversary
  • International tourist arrivals doubled in 2022: UN
  • Amoako Boafo’s Launch of Ghana Residency Was a Reminder of the Country’s Growing Arts Scene
  • Morocco: National Finery Museum Reopens to Critical Aclaim

Sponsored

Recent Posts

  • Court Orders Oxlade To Pay ₦5m Indemnity Over Leaked Sex Tape

    February 3, 2023
  • Artists gearing up for the Harlem fine arts show 15th anniversary

    February 3, 2023
  • International tourist arrivals doubled in 2022: UN

    February 3, 2023

Categories

  • Arts & Exhibitions
  • Culture & Festivals
  • Culture Africana
  • Culture People
  • Fashion & Lifestyle
  • Food
  • Music, Movies & More
  • News
  • Opinion
  • Photo News
  • Reviews (The Critics)
  • TCN Interview
  • TCN Literati
  • Tourism & Hospitality
  • Travel News
  • Travel Trends
  • Travelogue
  • What's Hot?
  • World Culture

Connect with us

Connect with us
  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • About Us
  • Advertise With Us
  • Privacy Policy
  • Contact Us

@2019 - The Culture Newspaper. All Right Reserved. Designed and Developed by Zero-One

The Culture Newspaper
  • Home
  • Arts & Exhibitions
  • Culture & Festivals
    • Culture Africana
    • Culture People
  • Fashion & Lifestyle
    • Music, Movies & More
  • News
    • Travel News
  • Opinion
    • Reviews (The Critics)
  • TCN Literati
  • Tourism & Hospitality