According to reports, South African Airways plans to terminate the employment of its employees, approximately 4700 people, and sell off assets to repay creditors.
Bloomberg reports that the airline has failed to persuade the government to provide another financial lifeline.
Employees have reportedly been offered severance deals from the end of April.
“The basic value of compensation will be one-month pay per year of service and will depend on the successful disposal of assets such as real estate, according to the document,” reports Bloomberg, referring to a proposal offered to 8 labour groups.
The coronavirus pandemic was possibly the last crisis SAA could handle, the airline was already reducing routes and considering job cuts before the pandemic forced a lockdown and travel bans.
SAA has been flying cargo planes and chartered flights to countries like Germany and Brazil in recent weeks, but no commercial passenger services.
The airline’s assets will now be sold in order to raise cash to repay creditors. Compensation for employees will also depend on the successful sale of the airline’s assets, which reportedly includes real estate.