The dire situation at South African Airways just got worse after it’s chairwoman, Cheryl Carolus, along with six other board members announced that they have resigned. This comes after JSE CEO Russel Loubser resigned on Wednesday when it was announced that SAA will not be able to submit it’s financial report before the stipulated deadline at the end of September. This resulted in the cancellation of the annual general meeting scheduled for this week. SAA is looking for a treasury cash injection of R6 billion.
Never a good sign when the chairperson and the board members bail.
“I believe in the airline, I believe it is a critical national asset at the southern tip of the hemisphere. It will always be an airline that is tough to run,” she said.
The Department of Public Enterprises has been lobbying the Treasury on behalf of the SAA for a cash injection of up to R6bn.
“We have come a long way in our communication with the government in understanding SAA and developing a 20-year plan for the airline,” Ms Carolus said. “I am convinced it is the best plan we ever had and the best management team we’ve ever had.”
She said the delay in the tabling of SAA’s financial statements at Parliament had been blamed on the board, which was not right.” [Business Day]