Just in: State-owned airline SA Express slips into business rescue

Photo: Bob Adams / Wikimedia Commons

The Johannesburg High Court has ordered that SA Express, the second-most popular state-owned airline, to be placed under business rescue. It comes just a matter of weeks after South African Airways (SAA) were forced into the same measures.

Why SA Express are under business rescue

The small-scale domestic airline has been suffering from turbulence over the past few years. It can’t pay its bills, and recently, they had their operating license revoked over safety fears. There are also numerous allegations that the operation was used for the purposes of looting by government officials.

SA Express limped into 2020, but it doesn’t look like it will be going anywhere fast. The process of business rescue usually sees a complete overhaul of operations, and it will take time to make the airline into something that resembles a competent outfit. But for yet another SOE to find itself in this position is a damning commentary for the respective structures of management and governance.

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