South Africa's treasury plans US$760m bailout for state airline
South Africa plans to table a special appropriation bill to parliament in the next month to request a ZAR10b (US$762m) bailout for the airline, treasury’s top official said Wednesday. SAA is seeking a ZAR13b bailout from govt to pay off debts and keep its planes in the air. The Airline also plan to fly 23% fewer flights by the end of the year as it retires 5 aircraft, a part of a revamp aimed at returning to profit. Acting CE Musa Zwane said the impact of the reduced flights would mostly be felt among domestic passengers although regional and international routes will also be affected. As part of its turnaround strategy, he said the airline was making good progress in bringing down operation and aircraft maintenance costs. However, liquidity constraints and exposure to volatile currency exchange rates remained a challenge, he said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-09-15/star/south-africas-treasury-plans-us-760m-bailout-for-state-airline
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South Africa's treasury plans US$760m bailout for state airline
South Africa plans to table a special appropriation bill to parliament in the next month to request a ZAR10b (US$762m) bailout for the airline, treasury’s top official said Wednesday. SAA is seeking a ZAR13b bailout from govt to pay off debts and keep its planes in the air. The Airline also plan to fly 23% fewer flights by the end of the year as it retires 5 aircraft, a part of a revamp aimed at returning to profit. Acting CE Musa Zwane said the impact of the reduced flights would mostly be felt among domestic passengers although regional and international routes will also be affected. As part of its turnaround strategy, he said the airline was making good progress in bringing down operation and aircraft maintenance costs. However, liquidity constraints and exposure to volatile currency exchange rates remained a challenge, he said. <br/>
