DEPARTMENT ASSISTS AILING AIRLINE
How the government plans to save SA Express
The state-owned carrier, which needs R121m in working capital and a further extension of its state guarantee, might get new leadership
State-owned SA Express is in intensive care and a dedicated war room has been created within the Department of Public Enterprises to nurse the loss-making domestic and regional airline back to health. It needs R121m in working capital and a further extension of its state guarantee. The airline experienced a serious cash crunch in February when it was unable to pay back loans. It continues to face profitability and liquidity challenges and has struggled to convince the auditor-general of its status as a going concern, the same problem it experienced in 2016. SA Express depends on a R1bn state guarantee as a lifeline. In 2014-15 it posted a net loss of R132m and at the end of March 2015 its total liabilities exceeded its assets by R126m. The full extent of its financial woes will be revealed shortly when the airline holds its annual general meeting and releases its long-delayed financial results for 2015-16. Public Enterprises Minister Lynne Brown told Parliament’s public enterprises ...
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