National
SAA reportedly considering selling off assets─── 10:30 Sun, 23 Sep 2018
SAA is reportedly considering selling off assets after banks have refused to lend it any more money – and its debt ballooned to R15bn more than its assets at the end of July.
A senior SAA executive told City Press this week that the airline’s finances are in tatters and the Auditor-General has raised serious concerns about its viability.
SAA, which is technically bankrupt, will therefore not present its 2017/18 financials to Parliament by the end of this month, as required by law.
Senior SAA staff and a confidential report, presented at the company’s board strategy session ten days ago, reveal that the airline’s management is now looking at a number of aggressive cost-cutting measures, including selling off its catering arm, Air Chefs, and outsourcing or selling SAA Cargo.
SAA has about R19.1bn worth of government guarantees.
SAA spokesperson Tlali Tlali said the airline was unable to comment because it had not seen the strategy document.
