SA Express escapes liquidation for time being

June 12, 2020: SA Express has escaped liquidation, after a judge granted a three-month delay in liquidation proceedings, giving the government more time to clarify its plans for the domestic and regional carrier, as per Defence Web.

SA Express was placed under provisional liquidation in April after its administrators said they could not secure funding for turnaround efforts. But lawyers for the airline’s administrators asked the High Court to delay a hearing on whether it should be finally liquidated, citing a letter from the state enterprises ministry that referred to an allocation of 164 million rand ($10 million) in the fiscal year that began in April, subject to certain conditions.

The lawyers said this was a sign that the “government is contemplating a form of ‘restart’ for the operations of the airline” and that delaying the hearing would allow “national executives to roll out proper plans”.

SA Express flew to domestic and regional destinations, but it suspended operations in March as the Covid-19 pandemic compounded its financial difficulties. It has not paid salaries since February, prompting some of its employees to protest in recent days.