Pretoria has vetoed South African Airways' (SAA) planned take-over and closure of Sun Air after refusing to write off R20 million ($3.3 million) owed by the defunct regional. The UK's Virgin Atlantic Airways is touted as a possible alternative investor.
The South African Government says the proposed sale of 75% of Sun Air by current shareholders led by the Rethabile black empowerment group does not make provision for repayment of the sum, due next year as a final payment on R50 million owed following the privatisation of the airline in 1997.
Public enterprises minister Jeff Radebe has also launched an investigation into all aspects of the Sun Air "debacle". He says the probe will investigate the nature of the take-over bid by SAA, which seems to have eliminated a rival at virtually no cost, and the role played by Sun Air stakeholders, who, in the wake of Pretoria's ruling, now have no airline, no buyer and are liable for the regional's debts.
The only ray of hope for Sun Air is its planned resurrection by ex-employees and an unnamed "international airline", thought to be Virgin Atlantic. Safair, meanwhile, has applied for the liquidation of Sun Air, claiming R800 million in outstanding 10-year lease and maintenance payments.
Source: Flight International
