SAA has R20 billion deficit ­ gets another bailout

PRESS RELEASE
Date: 25 February 2019
Global Aviator > News
SAA has R20 billion deficit – gets another bailout.

25 February, 2019 - South African Airways (SAA) was given a further R6.2 billion debt guarantee in the 2019 budget by Minister Tito Mbomweni, which, added to the R5 billion it received in October 2018, brings to R11.2 billion that the ailing national carrier has received from a struggling economy in just five months. This comes with the requirement that a chief reorganisation officer must be appointed in concurrence with the National Treasury and its bondholders. The CRO will undertake a full operational and financial review.

Following media reports that the airline will be split up into three entities, Vuyoni Jaran, CEO, has stated that "SAA has got three markets; domestic, regional and international. What we are doing is we are structuring the business units within SAA, no new companies but specifically bringing more accountability. Putting together teams that are going to be dedicated to drive our growth across the continent at the same time making sure that we continue to lead in the domestic market.

"We also want to give greater accountability for profit and loss, and commercial delivery to the international markets. Seventy percent of the revenues of SAA are coming outside South Africa. That means the structure of governance the process of taking decisions must be more inclusive. That's the change we are putting in place so that all of us are accountable."

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