SAA needs a cash injection, the airline’s directors say
STATE guarantees will allow the financially precarious airline SAA to continue as a going concern for the next 12 months but it still requires a capital injection to strengthen its balance sheet, its directors say.At end-March 2015 SAA had total liabilities of R24bn and total assets of R14bn, with only R1.3bn in cash and a bank overdraft of R1.4bn. Its accumulated loss amounted to R24bn.Treasury provided the airline with a R4.7bn guarantee earlier this month, allowing it to finalise its 2014-15 financial statements, which were tabled in Parliament on Friday. The deadline for the 2015-16 financial statements is Friday but these have not been tabled yet.READ THIS: SAA’s Myeni can expect a grilling in Parliament, says DAThe R4.7bn guarantee ensured that SAA remained solvent and had sufficient working capital to continue operating, and brought the total guarantee to R19bn, which the SAA directors said provided "reasonable comfort that SAA will have the ability to continue as a going co...
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