Loss Making South African Airways Seeks Government Bailout

Loss Making South African Airways Seeks Government Bailout

From AFP via Capitalfm

Hapless and helpless, South Africa’s struggling national carrier awaits news on a state cash injection vital to stay in the skies, but which shows up its inability to make money.

Eighty years after its creation, loss making South African Airways (SAA) battles with an ageing fleet and a weak national currency.

“It’s not a secret that our balance sheet is very weak,” chief financial officer Wolf Meyer admitted.

“There are currently discussions with the national Treasury, we hope that we get good news soon on the capitalisation,” he said.

State intervention is key to SAA’s survival and Finance Minister Pravin Gordhan is expected to shed more light on saving the airline during his annual budget speech in parliament this month.

In the meantime, the government has extended a two-year guarantee of five million rands ($444 million, 329 million euros) issued in 2012 in exchange for a vast restructuring

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