Investec CEO Warns Government Indecision Threatens SAA Survival

Squabbling between South Africa’s government and the state-owned airline’s bankruptcy administrator is threatening its chances of survival, Investec Ltd.’s chief executive officer said. President Cyril Ramaphosa in December placed debt-ridden South African Airways in business rescue, a local form of bankruptcy protection, Bloomberg News reported. Over the past few days, there’s been a flurry of conflicting messages from the government and the business-rescue practitioners, leaving investors and customers unclear about whether the carrier has a future. Last week, Ramaphosa and Public Enterprises Minister Pravin Gordhan said they oppose the business-rescue practitioners’ decision to close unprofitable routes. On Sunday, the Sunday Times newspaper quoted the chairman of the ruling African National Congress, Gwede Mantashe, saying the airline should be sold. Read more