Broke SAA could not pay its bills in July, airline tells MPs
SAA was unable to pay all its suppliers at the end of July and had to make arrangements with some of them to pay later, the airline’s chief financial officer Phumeza Nhantsi told MPs on Friday. Arrangements had to be made with 20 suppliers. SAA is facing a liquidity crisis and is not generating sufficient cash to cover its costs. It has told the Treasury that it needs state support of R13bn over the next three years, in addition to the R2.2bn granted recently. Nhantsi said the airline was unable to pay all amounts owing at the end of July and instead of paying the lump sums due, the airline was paying the amounts on a weekly basis as it generated revenue. However, SAA was covering salaries. Nhantsi also told members of Parliament’s finance committee during a briefing by Finance Minister Malusi Gigaba and the SAA team that the airline was also negotiating with lenders to extend the R6.8bn in loans that mature at end-September. These loans had already been extended after negotiation f...
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