South African Airways is to be placed into a “business recuse” following a sharp deterioration in its financial position.
The flag-carrier has battled mounting losses for a number of years, and will now seek an equity partner as the South African government looks to limit its liability.
The carrier last made a profit in 2011.
Officials said they planned to bring in a business rescue practitioner to take charge of the carrier and “perform the function of operating the airline with the assistance of management”.
The government will also inject R4 billion (£200 million) into the carrier to avoid imminent collapse.
The state-owned carrier said strike action last month had severely impacted its financial position.
Full service resumed on December 1st, with the airline agreeing to a six per cent pay rise for cabin crew.
A statement from South African Airways said: “South African Airways is today in a position to announce that the board of directors of SAA has adopted a resolution to place the company into business rescue at the earliest opportunity.
“As previously announced, the South African Airways board of directors and the executive committee have been in consultations with the shareholder, the department of public enterprises, in…