Legal Articles and Guides
The government has earmarked R819m to recapitalise SAA’s beleaguered subsidiary Mango. The figure was revealed in Parliament yesterday, according to a Business Day report.
The National Union of Metalworkers and the SA Cabin Crew Association intend asking the Constitutional Court to compel the National Assembly to debate whether state-owned regional airline SA Express should be permitted to go insolvent, says a Fin24 report.
Mango, the state-owned low-cost airliner that is struggling to stay afloat in the absence of fresh government money, was back in the skies last night after a payment dispute with SA’s airport operator briefly saw it stop operating, leaving customers stranded.
SAA is the one state-owned entity for which there is the least case for public ownership. Although there is an aspect of airfreight that has wide benefits, air travel is an upmarket option and state funds would be far better spent rehabilitating rail.
The National Union of Metalworkers of SA (Numsa) is calling for Comair's section 189 notices to be scrapped, accusing the airline of colluding with another union, Solidarity, to circumvent the ongoing retrenchment process.
Whether Comair's kulula.com and British Airways brands will be able to start operating again as from 1 December after all, might be impacted by an urgent Labour Court application by the National Union of Metalworkers of (Numsa), says a Fin24 report.
The future of Comair should be known by 18 September when creditors and shareholders are to make their decision on whether to adopt the business rescue plan tabled on Wednesday.
The business rescue plan for SAA has finally been approved after all conditions on which it rested were met yesterday, according to Business Day.
The business rescue of SAA has been prolonged after a dispute broke out between the government and the consortium of banks to which SAA owes money, on the eve of the finalisation of the rescue plan.
The Gauteng High Court (Pretoria) has ruled the provisional liquidators of SA Express can sell and transfer the state-owned airline’s property and try to attract new investment for the airline.
SA Express has become the first state-owned entity to be placed under provisional liquidation after the failure of its business rescue process, says a Business Maverick report.
The government has told the SAA business rescue practitioners (BRP) that it is unable to provide the airline with more funding, portending its imminent death or at best an orderly winding down, notes a Business Day report.
Former SAA chairperson Dudu Myeni has struggled to explain why she disregarded a previous board decision and instruction from the Finance Minister to sign a leasing deal with Airbus in 2015 and instead tried to alter the agreement without board approval, says a Daily Maverick report.
A Labour Court judgment, which on Friday dismissed an application to compel SAA to consult employees pending retrenchments was a ‘travesty of justice’, according to Numsa, which, together with the Sacca, failed to force the employer to begin consultations as required by the LRA.
With the dust from its failed bid to avoid business rescue barely settled, SA Express (SAX) is already gearing up for another legal battle – this time over more than R4.7m which global baggage services company Bagport says it is owed by the ailing state-owned airline.