Unions say they have found possible investor for embattled airline SA Express

9th June 2020 By: Rebecca Campbell - Creamer Media Senior Deputy Editor

Two trade unions, the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (Sacca) have jointly “noted” that the High Court has extended the provisional liquidation order for State-owned regional airline SA Express. The provisional liquidation order was originally meant to have been made final on June 9 (Tuesday). It has now been extended until September 9.

“As Numsa and Sacca we remain vehemently opposed to the liquidation of the airline,” they said in their joint statement. “We believe that SA Express is a viable airline that can be saved, and every effort must be made to find alternatives.”

The unions affirmed that the court had granted the extension because they had found a possible investor from the United Arab Emirates (UAE) and had consequently approached the business rescue practitioners (BRPs) and the Department of Public Enterprises (DPE) to explore this possibility. The UAE investor had expressed interest in SA Express.

“This extension will allow the investor to meet with DPE and hopefully come together on an agreement about the future of the airline,” stated Numsa and Sacca. “We understand the frustration of employees at SA Express who have not had an income since the end of February, and have been protesting out of frustration. This is why we are doing everything possible to find alternatives to liquidation, because we know it would worsen the situation for workers and their families.” 

In their statement, the unions also referred to State-owned national flag carrier South African Airways (SAA), which is under business rescue. The publication of the business rescue plan for SAA was postponed for the fifth time on June 8. It is now scheduled to be published on June 15. This new delay was at the request of unions including Numsa and Sacca.

“This is because the draft plan which was leaked to the media does not reflect the input of the unions and the proposals we submitted as part of the Leadership Compact Forum with the DPE,” they said. “The leaked plan is not a rescue plan and is not a viable turnaround plan for South African Airways. We also made it clear in our correspondence [with the DPE] that there must at least be an unequivocal undertaking to provide Labour with a final copy of the plan to be published, prior to publication, for final comment.”