BULAWAYO – Highly indebted regional airline SA Express on Wednesday announced it was suspending operations with immediate effect, citing a low demand for travel in the wake of the coronavirus outbreak.
The airline, which flies to Bulawayo daily, has accumulated losses estimated at R1.2 billion in the past decade.
“In light of adverse recent developments, including the impact of the Covid-19 pandemic, SA Express announces that it will suspend operations from March 18, 2020, until further notice,” the airline said in a statement.
Passengers will be accommodated on alternative flights.
All non-critical SA Express staff will be placed on compulsory leave.
“The airline will utilise this period to review its current network and streamline operations for improved efficiency,” it added.
In the February budget, South Africa’s finance minister Tito Mboweni said the government would have to decide if it still wanted to continue owning the airline, “given that it has a limited role in the local aviation market”.
In September 2019, SA Express received a government bailout of R300 million to ease its operational and financial challenges.
In February, the airline became the second state-owned airline after South African Airways (SAA) to go into business rescue after an order of the high court.
SAA has cancelled 162 flights due to the Covid-19 crisis and the travel restrictions put in place by the South African government, dealing another blow to the ailing state-owned airline.
A total of 38 international and 124 regional flights have been cancelled until March 31, SAA said on Wednesday.
From flying three times daily to Harare, SAA will now only fly twice daily.
“The effects of the outbreak of the coronavirus (Covid-19) have led to travel disruptions and restrictions across the world, leading to the grounding of aircraft, releasing employees and cancelling flights for many airlines. SAA is not immune to these realities,” it said.
