More funding required for SA Express: executive

SA Express provided an update on its state of affairs.

JOHANNESBURG - All is under control at South African Express. So says the airline’s executive.

This is despite the company being embroiled in corruption and its flights suspended as recently as last week.

The airline recently announced that it has received extended financial support from government.

READ: SA Express back in the air

Its board says the R1.2-billion given in January has been ring-fenced to settle historical government-guaranteed debt only.

It stresses more funding is required.

“I do not believe that we are moving from one financial crisis to the next. The biggest we faced was last year and the grounding of the airline. It was a number of factors that led to that," said acting CEO Siza Mzimela.

READ: SA Express under scrutiny at state capture inquiry

"When that R1.2-billion was granted to us it resolved the solvency issue. But it didn’t resolve everything. And we could not have all our aircraft returning to the sky."

Mzimela says SA Express has decided not to return to routes including Johannesburg to Richards Bay, and Johannesburg to George. It feels this will save it money.

Source
eNCA