SAA backs severance for 3,100+ staff; more buyer interest

South African Airways (SA, Johannesburg O.R. Tambo) has approved voluntary severance packages for more than 3,100 employees, local media reported, with the African Press Agency putting the number so far at 3,142. SAA is seeking to retrench over 3,700 of its 5,000 pre-crisis staff numbers as part of its restructuring process following the approval of the company’s business rescue process last month. The plan aims to retain a total workforce of 1,000. Of the 3,142 employees who have reportedly applied for the voluntary severance packages, 1,744 are ground staff, 978 cabin crew, 184 pilots, 135 specialists, and 101 in the management team. Packages range from guaranteed payments of USD21,000 per employee and up to USD118,000 for pilots, unions told the news agency. This includes, among other things, a 13th monthly salary for the year, one week’s severance pay, a one-month notice period, and accumulated leave paid out. Only South Africa-based employees of SAA itself, and not subsidiaries such as Mango Airlines (JE, Johannesburg O.R. Tambo) and SAA Technical, can apply for the packages, according to Fin24 news. Meanwhile, on August 24, the South African government said it had received “more than ten” unsolicited expressions of interest from private-sector investors and private equity firms for “a future restructured South African Airways and its subsidiaries” Air Chefs, SAA Technical, and Mango Airlines. The Department of Public Enterprises outlined a preferred set of characteristics for the new-look carrier including “an efficient and modern fleet with hybrid density options acquired at competitive rates”, “a right-sized and motivated workforce”, “a customer-centric airline designed to be lean, technology savvy, digitally native, and agile to service all market segments”, and “a smaller, effective, reinforced, and empowered board of directors”.