Billions promised to SAA to be granted in January

The R10,5-billion promised to SAA in the finance minister's medium-term budget speech will only be granted in January which means the government needs bridging capital from the banks. Courtesy of #DStv403

JOHANNESBURG - SAA workers will have to wait a little while longer for their voluntary severance packages.

The R10,5 billion promised to SAA in the finance minister's medium-term budget speech will only be granted in January, meaning the government needs bridging capital from the banks.

The Department of Public Enterprises has come out defending the billions granted to embattled SAA during the medium-term budget statement.

READ: SAA gets R10.5-billion government bailout

Public Enterprises Director-General Kgathatso Tlhakudi said, "South Africans deserve to be told the full story. There are people that are employed at the airline. There's a business that has been developed over many years. This is very strong brand. Very strong infrastructure. Very strong partnership. It's a good business that was badly run." 

The department is optimistic the new restructured airline will take to the skies in the next few months.

Tlhakudi said, "our minister has spoken about January next year, aiming to get SAA branding up in the air again. In the interim, we have planned for Mango to fly on behalf of SAA."

READ: Numsa 'relieved' at SAA bailout announcement

"You are correct there is still a lot of uncertainty around how the pandemic is going to pan out, but we really believe that we have a plan that is flexible enough to deal with the pandemic or not."

A new board and CEO will be appointed soon.

For now, the Department of Public Enterprises is in sensitive talks with the banks, to provide funding for the business rescue practitioners to at least execute part of the plan, prioritising the workers.

It is unclear when the airline will be taken out the care of the business rescue practitioners.

Watch the video above for more on this story.

Source
eNCA