South African Airways optimistic ahead of loan renegotiation

SAA A340-600

Debt-laden South African Airways (SA, Johannesburg O.R. Tambo) is renegotiating its loans, with ZAR9 billion (USD696 million) due and payable by June 30. The airline has announced that only one lender has asked for a full repayment, with the other loans supported by a government guarantee of ZAR19.1 billion (USD1.47 billion).

"We remain optimistic that the company will meet its loan obligations as these become due through negotiations with lenders and other initiatives," said Musa Zwane, SAA's acting CEO.

The troubled airline has committed to a turnaround plan, and recently brought on Seabury Consulting to assist in developing initiatives. In a statement, the airline said that management was "alive to liquidity and solvency challenges that face the business and has taken steps to ensure that the airline remains in business."

A corporate plan filed by South African Airways shows that the airline is on track for a net loss of ZAR853 million (USD65.7 million) this financial year, having failed to meet its revenue targets for three years running, reports Business Day.

Source:https://www.ch-aviation.com/portal/news/57171-south-african-airways-optimistic-ahead-of-loan-renegotiation

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