South African Airways (SAA) says its flights to all destinations are operating normally, after talks on a bailout plan for the state carrier ended without a solution at the weekend.
Government officials are scrambling to work out how they can provide R2 billion of funds it has promised SAA when the airline was placed under voluntary business rescue last month.
The airline’s business rescue practitioners held talks with government at the weekend to try to find a solution to SAA’s funding gap.
Last week, unions said SAA might suspend some flights and delay salary payments if government didn’t come up with a plan to provide the money soon.
Meanwhile on Sunday, the Public Enterprises Department said it was talking to the National Treasury to raise funds for SAA.
The airline is one of several South African state entities, including power company Eskom, that is mired in a financial crisis after nearly a decade of mismanagement.
State companies’ financial problems are seen as the single greatest threat to South Africa’s economy and have been largely responsible for pushing the country’s credit rating down to the brink of junk status.
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