South Africa pledges $650 million to South African Airways.
South Africa has pledged 10.5 billion rand ($650 million) to South African Airways (SAA), one of the state airline’s managers said Friday.
The managers took control of SAA in December after nearly a decade of financial losses, and have been trying to keep it afloat as the coronavirus pandemic worsens its problems. They published a restructuring plan in June, but the more than 10 billion rand needed has not materialized since the airline’s creditors approved it in July.
See also: The airlines fail to fill the planes and leave profitability behind.
Administrator Siviwe Dongwana said at a meeting of creditors convened to discuss the funding issue on Friday: “We have since received a new communication from the government with the support of the National Treasury indicating that there is a very clear commitment from the cabinet to provide funding to SAA in the amount of R10.5 billion.
The Department of Public Enterprises (DPE), the ministry responsible for the SEM, said on Friday that it was finalizing funding for the airline and that an adjustment appropriation bill would be announced and presented to Parliament soon.
“The national airline will not be liquidated,” the DPE said, adding that lenders will also be approached to finance the restructuring and layoffs.
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