http://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / All News RSS ← Back
Africa|Aircraft|Charter|Finance|Financial|South African Airways|Africa|South Africa|State Airline
Africa|Aircraft|Charter|Finance|Financial||Africa||
africa-company|aircraft|charter|finance|financial|south-african-airways|africa|south-africa|state-airline
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Verification Image. Please refresh the page if you cannot see this image.

Sponsored by

Close

Article Enquiry

Treasury to give SAA R10bn in special appropriation

Verification Image. Please refresh the page if you cannot see this image.
Close

Embed Video

Treasury to give SAA R10bn in special appropriation

Photo by Duane Daws

13th September 2017

By: African News Agency

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

National Treasury has agreed to give South African Airways a special appropriation of R10-billion by the end of September, director-general Dondo Mogajane told MPs on Wednesday.

“It will be for R10-billion, we have decided, because that will cover everything,” he said during a briefing on the ailing airline’s latest quarterly results to Parliament’s standing committee on finance.

Advertisement

The bill is due to be tabled in a special sitting and Mogajane said he hoped that the legislature would agree to the measure, adding that the treasury would be forced to look at a “Plan B” if MPs refused to support it.

Mogajane said nine lenders have agreed to roll over debt that would become due at the end of the month, while Citibank has agreed to roll over a portion of R1.761-billion the lossmaking airline is due to repay by the 30th.

Advertisement

SAA relies on government guarantees of R20-billion and needed government help in July to cover its debt. Treasury paid R2.2bn to Standard Charter earlier this year, with money taken from government’s emergency fund.

Treasury’s announcement follows much speculation about the form of further financial aid to the airline, following a leak of a proposal to sell Telkom’s shares to recapitalise SAA.

Mogajane said the bill would not be linked to the proposed sale, which would raise an estimated R14-billion.

The briefing saw SAA confirm that none of the five assumptions on which it has based its turnaround strategy had materialised.

These were SAA being a going concern, debtors extending terms for a minimum of three years, government giving a capital injection of at least R13-billion over three years, as well as the retiring of five excess wide-body aircraft and the retention of all the narrow-body aircraft in its fleet.

One of its narrow-body aircraft has been retired and five more would follow by the end of the month.

This will lead to a reduction of 37% of its share of the local market and 4% of the international market.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now
Register Close