SAA to get extra R6.5bn bailout

FINANCIAL PARACHUTE: The cash-strapped SA Airways has been given a lifeline subject to certain performance conditions -
FINANCIAL PARACHUTE: The cash-strapped SA Airways has been given a lifeline subject to certain performance conditions –

Guarantee will assist airline to publish delayed financial results.

A new R6.5-billion guarantee has been given to South African Airways‚ resolving questions by its auditors about whether it was a going concern and enabling it to publish its long-delayed financial results this month.

Finance Minister Nhlanhla Nene cleared up some of the questions that had lingered about SAA’s financial status in an interview on the sidelines of the World Economic Forum in Davos on Wednesday.

The Treasury‚ which has taken over from the Public Enterprises Department as SAA’s shareholder ministry after an unexpected cabinet decision last month‚ said the R6.5-billion guarantee facility‚ which adds to the R5-billion guarantee already in place‚ was subject to certain performance conditions by SAA.

Acting SAA chief executive Nico Bezuidenhout declined to comment on the additional guarantee.

-Hilary Joffe

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