Solidarity wants court to place SAA under business rescue
Cape Town - Trade union Solidarity plans to go to court in an attempt to have embattled national carrier South African Airways placed under business rescue.
The union said it wrote on Friday to President Cyril Ramaphosa, Finance Minister Nhlanhla Nene and Minister of Public Enterprises Pravin Gordhan to invite them to join the application.
As of 14:30 of Sunday, neither the president nor the two ministers had yet publicly responded.
In its letter Solidarity argued that SAA has been subsidised by taxpayers for too long. It added the national airline does not have "reasonable prospects" of generating growth or profits based on its recent financial performance.
As Fin24 previously reported, SAA recorded a loss of R5.67bn for the year ended March 2017.
"We are of the view that in order to sustain the job security of our members, in the interest of the taxpayer of South Africa and in the interest of SAA, that the institution of business rescue proceedings have become inevitable," read the letter.
The trade union said that the only way that SAA could become a sustainable business was to privatise it, either wholly or in part.
Solidarity did not say when or where it would lodge its application to have business rescue proceedings commence against the national carrier, only saying it would approach the courts "in due course".
It argued that it has the legal right to approach the courts, as it is an "affected party" according to the Companies Act.
Werner Human, the trade unions deputy Chief Executive, said in a statement Solidarity would "reveal its legal strategy" at a media briefing on Thursday.
* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER