South Africa’s government is insisting that flag-carrier South African Airways will not be liquidated, and that it will detail measures relating to funding the airline in upcoming legislation. Its department of public enterprises gave the reassurance as creditors met to discuss the airline’s future, after its rescue practitioners warned that critical funding had not been delivered. The department says there are 20 unsolicited expressions of interest under evaluation from potential investors in a restructured SAA. It adds that the government will “reprioritise” funds to finalise this restructuring and implement the rescue plan developed for the airline. This measure will be part of upcoming legislation, the Adjustments Appropriation Bill, which will be put before parliament. “The national carrier will not be liquidated,” says the department. It had pleaded for “patience” after the creditors’ meeting was called, insisting that efforts to locate funding sources were continuing, adding that it remained “sympathetic and deeply mindful” of SAA employees’ situation. The department reiterates its belief that SAA needs to secure a “credible” strategic equity partner that can offer specialist technical, financial and operational knowledge to the relaunched airline. It stresses that the government is working with transaction advisors to evaluate proposals from “several” potential equity partners for SAA. South African union NUMSA is claiming that workers at SAA – as well as regional operator SA Express, which has also been subject to business rescue – have not been paid “for months”. “We demand that [the treasury and department of public enterprises] put funding into SAA as they promised,” it says. “Where is the money?” The opposition Democratic Alliance party has accused the government of “fudge and bumbling” over SAA, claiming it has “misled” the country regarding a R10.4 billion ($640 million) funding package for the airline’s rescue. It believes the finance ministry and treasury have not agreed to provide the financial support, and that “no funding” will be supplied in the near future. The party is vehemently objecting to any taxpayer-funded bail-out of SAA, which it describes as a “dead duck”.

Source: Cirium

Two weeks, after five passengers on board a recent flight tested positive for the coronavirus. Hong Kong’s Civil Aviation Department has banned the carrier from operating flights between Kuala Lumpur and Hong Kong for a period of two weeks, effective immediately.
The five passengers were on the Cathay Dragon flight from the Malaysian capital on 18 September. All of them were connecting passengers travelling from India via an Air India Express flight, the carrier adds. Consequently, the aircraft operating the affected flight has been sent for deep cleaning, says the carrier, which is in the process of contacting all passengers who may have been in close contact with the infected passengers. The ban is a blow for Cathay Dragon’s plans for service resumption. The carrier states it was due to operate thrice-weekly flights to Kuala Lumpur. Both Cathay Dragon and parent Cathay Pacific have been operating skeletal networks in recent months, as travel restrictions crimped demand. Apart from Cathay Dragon, Indian flag carrier Air India also faced censure from Hong Kong authorities, after it was reported to have carried six passengers on board a flight from Delhi who tested positive for the virus. It is the second ban in recent months that Air India has received from Hong Kong, after it was found to have carried 11 passengers who tested positive in August. India has the second-most number of coronavirus cases in the world — behind the United States — at 5.3 million and rising.

Source: Cirium

Israeli carrier El Al is aiming to start restoring flights this month, beginning with a gradual resumption of cargo services on its aircraft. It says the cargo flights will resume starting on 21 September El Al is intending to follow these flights with a restoration of passenger operations from 1 October. The scheduled services will cover a “limited number” of destinations in the USA and Europe. The carrier suspended its passenger operations in March and has since been immersed in an efficiency drive and effort to obtain vital funding. “It should be noted that the volume of flights planned at this stage is not material,” says the airline, which had originally expected its flights to remain grounded at least to the end of September. El Al adds that the total number of services will be determined by demand. “Flights will be operated in accordance with the guidelines of the health ministry,” it adds. El Al also points out that, at present, entry into Israel is only possible for passengers holding Israeli passports. Some 5,940 personnel of the company are on unpaid leave, which will be extended at least to 31 October. While El Al expects a gradual return of some workers to operate the planned services, the figure will initially be relatively small.

Source: Cirium