South African Airways up for another government loan

SAA A330-200
Just one month after giving South African Airways (SA, Johannesburg O.R. Tambo) a ZAR2.2 billion (USD166.5 million) loan, the South African Treasury is now contemplating a ZAR13 billion (USD972 million) bailout to keep the airline solvent, reports Reuters. Finance Minister Malusi Gigaba told Talk Radio 702 that a final decision would be announced in October.

The embattled national carrier needs the cash injection to service its debts and maintain operations. Despite not generating sufficient cash to cover its costs, the airline told a parliamentary committee that it would be able to turn a profit by 2019, once its debts are settled.

At the same time, the government has said that a recovery plan must be "aggressively" pursued. However, an opposition finance spokesperson, Alf Lees, has said the airline should file for bankruptcy.

In related news, the airline has finally appointed a new CEO with Vuyani Jarana, replacing a string of acting CEOs who have been at the helm since 2014. With a stable leader now in place, the government is hoping its turnaround strategy will help bring the airline back from the brink.

Source:https://www.ch-aviation.com/portal/news/58425-south-african-airways-up-for-another-government-loan

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