SAA in limbo as it awaits R2bn bailout
The R2-billion government is promising to South African Airways, is only expected to see it through the end of next month. Lenders have forked out R2-billion of their own as part of the business rescue process. It’s not clear where government will get the money from. Government has spent about R16.5-billion in bailouts to keep saving SAA in the air over the past decade.
Liquidity has been a major concern at the airline. According to the Public Enterprises Department, the R2-billion, which is for operations, will only last until the end of February. The way the BRP (business rescue practitioner) work is that BP develops a plan, for the restricted SAA, now that plan needs to be funded. That plan is being finalised. A quantum of funds is required to enable that plan,” said Kgathatso Tlhakudi, acting director-general of public enterprises. But the government remains determined to save the airline.
“We are confident that National Treasury will be able to secure the funds. They have been engaging with various providers of funding to bridge this gap that we are looking for. And it’s important to do so because an airline of SAA is stature. Despite its problems, it remains a very important player on the continent,” said Tlhakudi. In the meantime, the airline says operations remain normal but, further turbulence is brewing. SAA’s sister airline, SA Express is also facing trouble.
Service provider Ziegler has put in an urgent court application to have the airline also go into business rescue. Ziegler is asking for R11.3-million in services. SA Express says the company is trying to benefit illegally from the airline.
In other news – Babes Wodumo beats Mampintsha on camera in their new docu-series
Babes Wodumo and Mampintsha have a new docu-series debuting this week – The controversial lovebirds shot a three-part docu-series titled Impilo.
In one of the scenes, Babes mercilessly punches Mampintsha after he refuses to give her a bank card. Babes Wodumo and Mampintsha have a new docu-series titled Impilo debuting on Moja Love this week. Read more
Source: eNCA
