SAA loss will more than double, to R3.5bn
‘This will represent a real cash loss as it will not contain the R1.9bn Airbus deal impairments that contributed to the R4.9bn loss in the 2014-15 year’
Troubled state-owned airline South African Airways (SAA) is projecting a loss of R3.5bn for the 2016-17 financial year, compared with the R1.5bn loss suffered in the previous year. This information is revealed to members of Parliament’s standing committee of finance in written replies to questions. DA deputy finance spokesman Alf Lees said there was "no doubt that these massive losses will mean that SAA will once again run out of cash and will have to pull out the begging bowl to get another government guarantee handout. The DA will write to Finance Minister Pravin Gordhan to urge him to refuse any further financial assistance to SAA, which is set on a path to self-destruction." Lees said it was of great concern that the R3.5bn loss is R1.8bn more than the R1.7bn loss for the year that SAA projected four months ago. "This will represent a real cash loss as it will not contain the R1.9bn Airbus deal impairments that contributed to the R4.9bn loss in the 2014-15 year." He said it was ...
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