The South African Airways Board of Directors has decided to place the company into business rescue. This was done following consultations with the Department of Public Enterprises to address SAA's financial challenges. Business rescue aims to create a better return for creditors and shareholders than other options. SAA will operate a provisional schedule and appoint business practitioners while subsidiaries like Mango will continue as normal.

1. Media Statement from SAA Board of Directors
For distribution
SAA TO ENTER INTO BUSINESS RESCUE
JOHANNESBURG, 5 December 2019. South African Airways (SAA) is today in a
position to announce that the Board of Directors of SAA has adopted a resolution to
place the company into business rescue at the earliest opportunity.
As previously announced, the SAA Board of Directors and the Executive Committee
have been in consultations with the shareholder, the Department of Public
Enterprises (DPE), in an effort to find a solution to our company’s well-documented
financial challenges.
The considered and unanimous conclusion has been to place the company into
business rescue in order to create a better return for the company’s creditors and
shareholders, than would result from any other available solution.
Furthermore, the company is seeking to minimize the destruction of value across its
subsidiaries and provide the best prospects for selected activities within the group to
continue operating successfully.
SAA understands that this decision presents many challenges and uncertainties for
its staff. The company will engage in targeted communication and support for all
employee groups at this difficult time.
SAA will endeavour to operate a new provisional timetable and will publish details
shortly. The company greatly appreciates the continued support of both its
customers and partners in the travel industry around the world.
The Board of Directors will also announce the appointment of business practitioners
in the near future, and provide media updates as and when appropriate.
It is important to point out that services operated by SAA’s subsidiary airline, Mango,
will continue as usual and as scheduled.
END
ISSUED BY SAA BOARD OF DIRECTORS
For Media Enquiries, please contact:
SAA Spokesperson Mr Tlali Tlali Email: TlaliTlali@flysaa.com Mobile: +27 (0)82
333-3880 Office: +27 (0)11 978-2298