South African Airways (SAA) creditors have approved a rescue plan for the struggling airline that requires at least 10 billion rand ($596 million) in new funding. State-owned SAA, which last made a profit in 2011, entered bankruptcy protection in December and suspended commercial passenger flights in March when the government imposed one of the world’s strictest lockdowns to contain the new coronavirus.
Persistent wrangling between the airline’s administrators, the government and trade unions has complicated rescue efforts, which delayed the publication of a restructuring plan until last month.
That plan envisages scaling back the airline’s fleet and shedding jobs before gradually ramping up operations as the disruption caused by COVID-19 eases.
The plan has been approved by 86% of voting interests.
The Department of Public Enterprises (DPE), the ministry responsible for SAA, has indicated it would give the administrators a letter with a funding commitment, in time for a deadline stipulated in the rescue plan.
Meanwhile, an interim board of directors for the new SAA is set to be revealed soon.