SAA does not owe funds to privately owned local airline Airlink beyond the business rescue process, the South Gauteng High Court in Johannesburg ruled on Tuesday.
Airlink argued that payment owed for flown and unflown tickets before SAA went into business rescue in December 2019 should not be treated as “pre-commencement debts” under the business rescue process, which would make Airlink a concurrent creditor under the business rescue plan.
The high court upheld two previous judgments on the same matter — by the Supreme Court of Appeal and the high court in 2020, according to SAA.
In the latest judgment, the court again found that Airlink’s claims have no merit, and the application was dismissed with costs. The court found that Airlink was aware as per previous rulings that it was a concurrent creditor and was also aware it had to submit a claim under the business rescue process.
“We welcome the judgment and hope this finally lays this matter to rest. SAA’s journey through business rescue was both painful and necessary,” SAA interim CEO John Lamola said in a statement. “The airline you see today is a very different one that has had to rebuild itself from the ground up.
“Today’s judgment is another step in helping us conclusively turn the page on that chapter as we move toward becoming a more sustainable, resilient business, with a new route on the horizon.”
SAA is set to launch its first intercontinental route since it exited business rescue, with direct flights to Sao Paulo, Brazil.
Airlink, in a statement, acknowledged the court’s decision on its application to recover about R890m from SAA, calling the decision “unfortunate”.
“Airlink brought the application to the court in 2022 on the basis that the funds were derived from ticket sales for Airlink flights prior to SAA voluntarily placing itself in business rescue on 05 December 2019, but payable after that date,” the statement said.
“Airlink respects the court’s decision, it is after all the duty of the company’s leadership to explore every available avenue to recover the funds. Meanwhile, we will continue to focus on growing Airlink as an independent, financially robust, commercially vibrant, competitive and sustainable airline,” said Airlink CEO and MD Rodger Foster.
Update: July 25 2023
This article has been updated with Airlink’s response.
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