South Africa
R3.5bn loan to help keep SAA afloat─── 09:27 Wed, 29 Jan 2020
South African Airways (SAA) business practitioners on Tuesday said the R3.5 billion loan from the Development Bank would help keep the airline afloat.
The national carrier has also vowed to assist to pay January salaries in full.
SAA entered into a form of business rescue last year after years of financial problems and reliance on government bailouts.
SAA business rescue practitioners said the R3.5 billion would ensure SAA remained operational.
Last week, the airline was forced to cancel some flights due to low demand.
SAA chief commercial officer Phillip Saunders said: “The total of R3.5 billion and an immediate drawdown of R2 million. This represents the work being carried out by stakeholders, government, lenders, the business management team and lenders.”
SAA said the restructuring would help the company become sustainable, competitive and efficient.
