Tuesday, 28 April 2020 14:36
SA Express has been placed under provisional liquidation.
State-owned regional airline SA Express has been placed in provisional liquidation after its business rescue practitioners filed an urgent court application,on March 25.
The High Court in Johannesburg granted an order on Tuesday 28 April 2020 for the provisional liquidation of SA Express,
This comes after the airline was placed under a form of bankruptcy protection known as business rescue in February.
The airline suspended its operations on March 18 due to the Covid-19 outbreak.
The airline stated: “In light of adverse recent developments including the impact of the Covid-19 pandemic, SA Express announced that it will suspend operations from March 18 2020 until further notice.”
Customers who have booked with the airline need not worry as all customers will be accommodated on alternative flights.
It also revealed that all non-critical SA Express staff will be placed on compulsory leave during this time.
“The airline will utilise this period to review its current network and streamline operations for improved efficiency. SA Express will provide communication on any additional developments in due course,” the press statement added.
On March 30, the board of directors of South African Express (SA Express) said that the company's interim chief executive, Siza Mzimela, was leaving the airline after just 18 months "to pursue other options".
"Mzimela joined SA Express as interim CEO following her role as a member of the intervention team entrusted with the mammoth task of resuscitating the airline after it had been grounded," said the company's divisional manager for marketing, brand and product, Mpho Majatladi.
A hearing for the possible final liquidation of SA Express is expected in June.
A final liquidation implies the immediate death of SA Express as its operations would permanently shut, all 691 employees would lose their jobs and assets would be sold to pay creditors.