South African Airways could be in deep trouble, as the airline was denied a funding request of R10 billion.
The Department of Public Enterprises (DPE) said in a letter that government cannot support SAA’s request for further funding or provide any future funding to sustain the business rescue process. Government will also not provide any further guarantees to SAA to facilitate borrowing, the letter stated.
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‘SAA is hardly functioning at the moment other than flying on rescue missions. They have no revenue coming in. So, the only way they can survive is by pouring more billions of rands into them which is like pouring money into a hole,’ Economist and director of Econometrix, Azar Jammine, told Fin24.
Member of Parliament Minister Pravin Gordhan, urged the airline’s business rescue practitioners to consider their options within their ‘available resources.’
Image: Getaway gallery
