South Africa raises funds for state airline to US$1.1b
South Africa almost doubled the level of funding for South African Airways to ZAR16.4b (US$1.1b), cash that will go toward supporting a restructuring plan for the technically insolvent carrier. The bailout will be used to service and pay debt previously guaranteed by the state over the “medium term,” finance minister Tito Mboweni said in his budget speech Wednesday. The amount compares with ZAR9.2b earmarked for SAA in October. “It is the very sincere hope of many that this intervention will lead to a sustainable airline that is not a burden to the fiscus,” Mboweni said. While the planned shuttering of multiple domestic routes at the end of this month has drawn opposition from president Cyril Ramaphosa, the government intends to respect the authority of the business-rescue process. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-28/star/south-africa-raises-funds-for-state-airline-to-us-1.1b
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South Africa raises funds for state airline to US$1.1b
South Africa almost doubled the level of funding for South African Airways to ZAR16.4b (US$1.1b), cash that will go toward supporting a restructuring plan for the technically insolvent carrier. The bailout will be used to service and pay debt previously guaranteed by the state over the “medium term,” finance minister Tito Mboweni said in his budget speech Wednesday. The amount compares with ZAR9.2b earmarked for SAA in October. “It is the very sincere hope of many that this intervention will lead to a sustainable airline that is not a burden to the fiscus,” Mboweni said. While the planned shuttering of multiple domestic routes at the end of this month has drawn opposition from president Cyril Ramaphosa, the government intends to respect the authority of the business-rescue process. <br/>
