South Africa’s national airline, South African Airways (SAA) has announced plans to fire all its staff with effect from 30th April 2020.
This comes after the government decline to provide the airline with additional funding in order to remain afloat, in addition to disallowing foreign financing of a business rescue plan.
However, the airline has offered a severance package to all 4,700 staff, comprising of one week’s pay for every year of service, one month’s salary in lieu of notice pay, and pay for outstanding annual leave days.
Bloomberg reports that, therefore, the airline is looking to sell assets so as to raise cash for repay creditors and covering the severance packages.
Earlier on in February this year, the airline announced plans to sell its two night-time landing slots at London’s Heathrow Airport, a move that sought to help it attain financial stability,
Read Also: SAA Hints at Sale of Heathrow Slots
Furthermore, as of 29th February 2020, SAA cut its flights to various destinations, including Hong Kong, East London, Port Elizabeth, Sao Paulo, Entebbe, Munich, Durban, Luanda, Guangzhou, Ndola, and Abidjan. All these were measures to ensure the airline returns to profitability.
Although the airline was already struggling business-wise, the COVID-19 pandemic has also added to its miseries, seeing that all international passenger flights remain suspended. Still, it has been flying cargo planes and chartered flights to countries such as Germany and Brazil.
South African Airways is the state-owned flag carrier of South Africa. Its headquarters are in Airways Park at O.R Tambo International Airport. The airline links over 40 local and international destinations across Africa, Asia, Europe, North America, South America, and Oceania. Its base is at Johannesburg International Airport.
The airline has been on the brink of collapse, struggling to make profits and majorly relying on government bailouts to survive. In December last year, it was placed under business rescue.