WATCH: Solidarity COO Dirk Hermann on the union’s reasoning behind its SAA business rescue application, and its potential effects.

A South African union filed a case on Thursday asking a court to subject the distressed state-owned airline SAA to a business rescue, with the aim of restoring it to profitability.

Solidarity said it would “mean that the court can appoint a business rescue practitioner with comprehensive powers to rescue the airline.”

“We are profoundly aware of the crisis SAA finds itself in. SAA is heading for liquidation which will have huge consequences for employees, the South African economy and for taxpayers. In all, 11 000 workers will lose their jobs and a debt burden of billions of rands will have to be absorbed by the Treasury if there is no radical intervention. A business rescue application is the only remaining option to limit the damage. Recent events at SAA accelerated the crisis. SAA’s Day Zero is imminent. The current shareholder has lost control over finding a solution for SAA,” said Solidarity COO Dirk Hermann.

The union says in the application it’s acting on behalf of its SAA members and those in public enterprises in all SA sectors “and on behalf of every South African who is paying tax”.

It says the Companies Act allows for public enterprises to be placed in business rescue and for trade unions to bring such an application.

The union sent the following tweets:

.@SolidariDirk: "To wait until SAA turn around perfectly by itself is irresponsible and is not grounded in the reality that this enterprise is on its way to total collapse. Business rescue offers an opportunity to make an emergency landing instead of aiming for disaster." @eNCA pic.twitter.com/Bz5q3QdFmq — Solidariteit (@solidariteit) November 21, 2019

.@cpm747 "It is not a government owned company. This is our company. The accumulated losses of SAA increased from R16 billion in 2013 to R31 billion in 2019. We cannot ignore this fact any longer" @Powerfm987 @JacaNews @SAfmnews pic.twitter.com/oXG7AW3hUW — Solidariteit (@solidariteit) November 21, 2019

Solidarity says if its application is successful, it would be the first time that an SOE is placed in business rescue. “This will mean that the court can appoint a business rescue practitioner with comprehensive powers to rescue the airline.”

A crippling six-day strike in the past week has pushed South African airways to the brink of financial collapse. Such a rescue would hand over control to a busi­ness res­cue prac­ti­tioner who then tries to restore the com­pany in order to avoid liquidation.

Developing story.