The Government drops it by denying it the umpteenth contribution of money, and the workers will be fired from this month.
South African Airways closes. Lay off your entire staff, and you will no longer fly. It occurs in the middle of the coronavirus crisis, but its financial situation is long before the onset of the disease. What happens now is that the Johannesburg government has definitely decided to drop it. Her planes were already on the ground due to the coronavirus, but when they last landed, there were chances that she would not take flight. The airline, born in 1934, dies at 86 years of age, as a result of the poor management that has caused the greatest economic losses in the entire sector. Since 2008 it does not give any benefit.
Workers will receive one month of dismissal for each year worked if the company’s assets are liquidated for an amount that allows payment. The most valuable assets of the company are flight rights, especially those of Heathrow airport and New York.
The last phase of its crisis has been especially painful because the CEOs have succeeded one another, the annual accounts have not been approved, and the management, in general, had fallen to unsustainable levels. In 2019 the company took advantage of a legal entity to function despite being bankrupt, with two administrators who have asked for public money and who now, after not getting it, have decided to close the company.
Contrary to the usual, the parliament welcomed the closure as a result of the Public Enterprises Department refusing to put more money. Parliament said in a note that “South African Airways cannot continue to ask for government bailouts while refusing to meet the required financial counterparts. This prevents the public control of the money”.
South Africa will thus become one of the few countries in Africa without a flag carrier, although practically other operators, including national ones, had replaced it.