South African Airways seeks funding as state wavers on aid

South African Airways is in talks with lenders including Standard Bank Group and Investec about funds to alleviate a cash crunch brought on by persistent losses and a week-long strike, according to people familiar with the matter. Negotiations are also taking place with Absa Group, Nedbank Group and FirstRand’s Rand Merchant Bank, said the two people who asked not to be identified as the discussions are private. The state-owned company aims to raise enough money to pay salaries, fuel its planes and cover other costs until March 2020, they said. The banks all declined to comment. SAA’s bid to obtain more loans isn’t assured, even if it secures state backing. When the carrier tried to raise the money needed to ensure continued operations for at least 12 months and to finalize financial statements for fiscal 2018, “lenders were not willing to extend facilities even on the strength of government guarantees,” it said in a document presented to lawmakers on Monday. “The hesitant and inconsistent approach to addressing the recapitalization of SAA has made it difficult for the board to conclude on its going-concern status,” the carrier said.<br/>