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Thursday 30 January 2020

South African Airways saved by cash bailout

Troubled South African Airways (SAA) will survive a while longer after being given a Government-backed bailout of R3.5 billion ($AU3.6 million).

The money has been diverted to the ailing airline by the Development Bank of Southern African (DBSA).

SAA said in a statement: "Stakeholders of the airline should have more comfort now that the rescue operation is on a more sound footing. Passengers, travellers and airlines may continue to book with SAA with renewed confidence."

The airline last week cancelled several flights but denied it was on the brink of collapse. It was placed in a local form of bankruptcy in December last year.

SAA has been loss-making since 2011 and has survived on government bailouts and state-backed guarantees on external loans.

Its business-rescue experts have until the end of next month to provide a complete turnaround plan.

SAA flies routes to 21 destinations across Africa and cities further afield, including New York and London. It has daily flights from Perth in Western Australia.

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