in Business & Finance

SAX employees assist in saving the airline

Posted 4 August 2020 · Add Comment

A group of South African Express employees have engaged an equity funding platform, Uprise Africa, to assist in raising the capital needed to save SA Express.

A group of SAX employees form Uprise Africa to help raise funds to save the airline.  Image:  South African Express

 

The group said it strongly believes that SA Express (SAX) is a national asset that should be salvaged and definitely not liquidated. They further believe that the company is a viable business and if rescued with the correct strategy, could be a very profitable one.

 

“Liquidating SAX translates into slicing through the very artery that feeds the minor towns and cities in SA, and closing the gateway to our more rural areas,” said SAX spokesperson Michael Hlatshwayo.

 

“One of the major factors in improving our economy, would be to stimulate internal travel by South Africans taking ‘sho’t lefts’ through the country. Without a skilled carrier such as SAX, this becomes difficult for many everyday South Africans.”

 

In addition to the loss of access to cities and towns, liquidating SAX will have a massive detrimental effect on the staff. SAX directly employs skilled and moderately skilled South Africans. 60% of these citizens are in the minor cities, providing jobs, livelihoods and a vital economic lifeline to thousands of people in the cities. 30% of the staff complement come from the rural areas where skills are severely underdeveloped, but with the assistance from companies such as SAX, skills could be recognised and developed.

 

“The airlines internal financial troubles stem from political interference in its operations, nepotism, poor controls and poor management, exacerbated by external challenges – we can change this! “added Michael Hlatshwayo.

 

“SAX’s fundamental business models are sound with small, cost-efficient aircraft, under-serviced destinations and exclusive, high-value routes. The execution of a revised business model and right-sized operation, by competent management, free of political interference, will return the airline to profitability.”

 

Another imperative on the agenda for SAX employees is for the Department of Enterprise to give the employees their well-deserved retrenchment packages.

 

A ‘survival mode’,” is important for them to emerge with stronger mindset to shape their future vision with a new perspective and lay the foundation for implementing this new approach.  It takes a lot of hard work to publicize your offering and attract potential investors,” said Tabassum Qadir, the CEO of Uprise.Africa.

 

 An initial review of the proposed Business Plan was conducted by Uprise.Africa’s Legal and Compliance team, and consequently an Expression of Interest was submitted to the Provisional Liquidator through its appointed Agents - GoIndustry DoveBid SA (PTY) LTD. The proposal will need to be approved by the liquidators, shareholders and relevant authorities.

 

Uprise.Africa will appoint Lufthansa Consulting to conduct further Due Diligence of the project before it goes live on the platform to its registered, accredited national and international investors.

 

“This is great news for SAX, the Employees and the greater South Africa as it brings a spark of hope to many businesses facing the same prospects,” said SAX spokesperson in closing.

Other Stories
Advertisement
Latest News

Air Express Algeria secures three aircraft on lease from ACIA Aero

Air Express Algeria, which serves the oil and gas industry from its hub in Hassi Messaoud, has secured three aircraft on lease from ACIA Aero.

Safari tracks a new flightpath

International tourism dropped by 72% between January and October 2020, compared with the same period in 2019, according to Kenya’s Tourism Research Institute. It was a body blow for the airlines that focus on supporting the industry.

Embraer releases technical guidance for sanitisation on aircraft

Embraer has released technical guidance to apply UV-C lights for cockpit sanitisation, as well as disinfectants and coatings for the cabin in the Company’s commercial aircraft. According to these specifications, the utilisation of

Vertis Aviation adds Ghana-based Challenger 604 to serve Africa

Switzerland-based Vertis Aviation, is expanding its footprint in Africa with the addition of a Bombardier Challenger 604 to the Vertis Charter Management Programme (VCMP).

African airlines’ traffic dropped 66.1% in January

The International Air Transport Association (IATA) announced that passenger traffic fell in January 2021, both compared to pre-COVID levels (January 2019) and compared to the immediate month prior (December 2020).

AFRAA to launch the Sky-Connect dialogues

On 10th March 2021, AFRAA will launch the Sky-Connect dialogues - a monthly top executive leadership series on developments within the aviation space in Africa and globally.

EDGE SK2601300621
See us at
Aviation Africa 2021 BTNNDAS21_BTWDS BT1202090322Aviation MENA 2021