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SAA secures R3.5bn loan to keep operating 


South Africans Airways says it has secured the R3.5bn loan it needed to keep operating until the end of the financial year in March, says Fin24.

The loss-making flag carrier, which is battling cash flow challenges, is implementing a three-year turnaround strategy, and has said it needs a total of R21.7bn in loans over the same period.

In October, the National Treasury allocated R5bn to SAA, as announced during the medium-term budget policy statement and the funds were directed at debt repayment.

SAA interim chief financial officer, Deon Fredericks, revealed in November 2018 that the national carrier needed to raise R3.5bn by March, as it battles operational and financial challenges.

Plans to turn around the flag carrier included the implementation of capacity adjustment in the domestic market and network optimisation in the regional and international markets.
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