SAA transition plan shows crippling losses

A “transition plan” drawn up by the former board of directors of South African Airways (SAA) has indicated that the airline will report a loss of R1.25bn for the past financial year, while the airline’s liabilities exceed its assets by 359%. The airline was granted a R5bn government guarantee last week that will allow it to continue borrowing and keep flying but there are concerns that this will not be enough and the Department of Public Enterprises has conceded that more money will be needed from the Treasury to support the carrier. The transition plan stated: “SAA’s balance sheet was