SAA's $665m bailout does not cover aircraft lessors, other creditors

Money owed to aircraft lessors and some creditors of South African Airways is not covered by a 10.5b rand ($665m) government bailout, SAA’s administrators said. South Africa’s government allocated the latest cash injection for SAA in last month’s mid-term budget, but says it will not put further money into the airline. SAA’s administrators said on Thursday that 1.7b rand owed to lessors and 600m rand which it owes to creditors from before the airline went into administration nearly a year ago would not be covered. That could complicate government talks with prospective investors in SAA, which has not made a profit since 2011. They said the additional debts are “only payable from next year July and will be paid over a three-year period,” so the bailout money only covers “initial commitments”. The administrators forecast in June that SAA would lose more than 6 billion rand over the next three years. Some analysts expect greater losses given the damaging impact on air travel of the COVID-19 pandemic.<br/>