The near-R900 million in airfares that SAA accepted on behalf of Airlink but never paid over to Airlink, (before SAA’s business rescue commenced), will not be dealt with outside the business rescue process, the High Court of Johannesburg has ruled.
This means that Airlink is to be treated as a concurrent creditor of SAA.
Airlink has issued a statement acknowledging the Johannesburg High Court’s decision on its application to recover approximately R890 million from its former franchise and commercial partner, SAA.
“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.
Unfortunately, the High Court dismissed Airlink’s application,” said the Airlink statement.
“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 Managing Director, Rodger Foster.
SAA simultaneously released a statement saying it welcomed the July 25 ruling that it did not owe funds to Airlink beyond SAA’s business rescue process.
SAA Interim CEO, Professor John Lamola said: “We welcome the judgment and hope this finally lays this matter to rest. SAA’s journey through business rescue was both painful and necessary…”
