Lifeline for SAA

Dino D'Amore
By Dino D'Amore January 26, 2015 20:52

Lifeline for SAA

South African Airways (SAA) has been given a further government guarantee of ZAR6.5 billion (US$564.6 million) to allow it to continue operations.
SAA will be able to borrow against the funds, with the government standing as a guarantor in the event of a default.

“The additional guarantee will enable SAA to finalize its annual financial statements for 2013/14, making it possible for the airline to hold its annual general meeting on Friday next week, Jan. 30, 2015,” the Ministry of Finance said in a statement.

Under the terms of the agreement, SAA must submit an implementation strategy for the 90-day action plan within a month, with timelines and the names of accountable managers. Further progress, on governance and working capital management, must be reported monthly, along with a weekly report to the treasury.

Dino D'Amore
By Dino D'Amore January 26, 2015 20:52