SA Express plans fleet expansion

SA Express, sister company of South Africa Airways, has announced that it plans to buy 30 new aircraft worth $829 million. Questions are being asked as to how the airline will be able to finance such a large purchase given its last year’s loss of R594m and total equity of R263.8m. SA Express has a R1.3bn guarantee in place but this expires in the next two years. Critics are predicting the airline will approach the government for cash to expand its fleet.