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The Minister of Finance has noted recent media reports about developments at SAA. Media reports about
the position of the National Treasury and the Minister on the Airbus swap transaction are premature. SAA
last week submitted a section 54 application to the Minister, to restructure the Airbus deal. The National
Treasury's Fiscal Liabilities Committee is currently studying the application and will make
recommendations to the Minister in due course. A decision is yet to be made on the application. The
Minister will be looking for a deal that benefits the airline financially, or one that does not leave SAA in a
worse-off position.

The Minister is also concerned about senior management movements at the airline. "Leadership stability
is crucial to implementing the Long Term Turn-around Strategy so that the airline can return to financial
sustainability. I have therefore requested the board to brief me on these developments and their impact
on the operations of the airline," the Minister said.

The Minister wishes to state that the board of SAA is in quorum and the process of appointing a full board
is underway.

Issued by Ministry of Finance