SA Express’ operations are continuing as normal after the South African regional and domestic operator confirmed it is now under a formal business rescue restructuring process
The carrier’s management had on 6 February said it would appeal a court decison ordering SA Express to enter business rescue restructuring, arguing the court “went over and above” the measures required and granted orders which were “not sought” by the applicant.
”While the manner in which the introduction of the business rescue process occurred is unfortunate, this now provides the environment to facilitate the conclusion of initiatives that had already been initiated by the board and executive team,” the carrier says in a statement issued today.
”In just under 24 months, SA Express’ board of directors and executive team worked tirelessly to rebuild operations and reinstate governance structures while implementing the airline’s robust turnaround strategy.”
SA Express operates a route network in southern Africa using a fleet of Bombardier CRJs and Q400s. Last October the country’s public enterprise ministry said South African Airways and SA Express, both state-owned operations, were not going concerns in explaining delays in the filing of their respective annual reports.
SAA entered formal Business Rescue in early December and SA Express recently complained that it had been struggling to retrieve payments from SAA which, it claims, the flag-carrier owes
”SA Express continues to affirm its critical importance to South Africa’s developmental objectives through its expansive aviation value chain which impacts multiple industries, the carrier says in a statement, saying it was continuing to operate as normal during the Business Rescue process.
”At route level, SA Express makes a positive contribution and is an invaluable strategic national asset whose mandate includes economic development and job creation that is desperately needed in the country.”