SAA gets another bailout

File: Another bailout is on the cards for South African Airways as announced by Finance Minister, Tito Mboweni.

SAA

PARLIAMENT - Another bailout is on the cards for South African Airways as announced by Finance Minister, Tito Mboweni.

READ: Treasury approves R23bn impairment for SAA investment

The minister says the national carrier will receive a cash injection of R5-billion from the government to settle its debts. 

Mboweni made the announcement during his maiden budget speech on Wednesday. 

READ: Selling off assets won't save SAA, says DA

"SAA will reduce and ultimately stop operating loss-making international routes," he said.

"SAA procurement has unlocked annual cost savings of R400-million. Despite these efforts, SAA is still loss-making and even more radical measures need to be undertaken.

"To support a sustainable reconfiguration of our airline portfolio, in 2018/19 government will provide additional funding for SAA and South African Express Airways."

Source
eNCA