Dubai — State-owned SAA has reached an agreement in principle with lenders to roll over $642m (R9.2bn) of debt, its CEO said on Tuesday, giving him room to execute a turnaround aimed at weaning the airline off government bailouts. President Cyril Ramaphosa has made a point of supporting ailing state-owned enterprises (SOEs) such as SAA, which survive on government handouts, but the extent of their financial difficulties has meant slow progress. SAA, which has not made a profit since 2011, has drawn up a five-year turnaround plan that includes slashing costs and canceling unprofitable routes as it grapples with cost increases that far outstrip revenue growth.
CEO Vuyani Jarana told reporters at a CAPA aviation summit in Dubai that SAA had reached an agreement in principle about extending the maturities of its R9.2bn debt burden. He did not give details of the agreement, saying talks with lenders were ongoing. “The principle to roll over the debt has been struck but we do need t...
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