SAA chief says government has promised it another R5bn
South African Airways CEO Vuyani Jarana says this R5bn injection will last until about October or November
The government has promised another R5bn capital injection to help its struggling state airline meet urgent financial obligations, the CEO of South African Airways (SAA) said on Thursday. SAA has not generated a profit since 2011 and has already received state guarantees totalling nearly R20bn. It needs the money to help pay debts and prop up the business as it implements a turnaround plan. The promise of more government cash comes after SAA CEO Vuyani Jarana told Parliament in April that the firm needed the capital injection "now". "Government has committed to inject another R5bn into SAA. Part of that R5bn we will repay some of the creditors, suppliers, then the balance will support us for working capital until around October/November," Jarana told Reuters in an interview. The Treasury said it would follow its normal budgetary process, which entails seeking Cabinet approval. "The outcome of this process is expected to be finalised in time for the 2018 medium-term budget policy sta...
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