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