Solidarity drops application to have SAA placed under business rescue

Photo_Web_SAA_280617

File: Union officials claim SAA is a profitable organisation that's being undermined by looters.

File: Union officials claim SAA is a profitable organisation that's being undermined by looters.

Photo_Web_SAA_280617

File: Union officials claim SAA is a profitable organisation that's being undermined by looters.

File: Union officials claim SAA is a profitable organisation that's being undermined by looters.

JOHANNESBURG - There may be some hope for South African Airways.

Although the airline comes with serious liquidity issues, some experts say the carrier remains a viable business.

SAA told trade union Solidarity it’s now seeking a strategic equity partner to help improve its finances.

The union, in turn, abandoned its application to have SAA placed under business rescue.

READ: Turbulence ahead as SAA records massive loss

SAA is in desperate need of financial support.

It hasn&39;t had an operating profit for the past six years.

The airline now wants to improve its balance sheet to make buy-in more attractive to potential investors.

But this may not be possible given the financial mess it finds itself in.

A strategic partner will need to change a number of factors in order for SAA to operate effectively.