South African Airways will remain open for business‚ the National Treasury assured on Wednesday‚ adding that it has been working closely with the airline to ensure that it has the cash it needs to meet its obligations with they fall due.
It said that steps taken included repatriating funds from overseas and efforts to secure further short-term bridging facilities.
Of the R14.4 billion in guarantees extended to SAA‚ the airline had R2 billion it had not utilised‚ which could be tapped for additional financing‚ it added.
“National Treasury has been in contact with several of the lenders currently providing SAA with unguaranteed short term facilities and indications are that the banks are not intending to withdraw their facilities at this time.
“Regular engagements with lenders have been taking place since 2014 and will continue until the airline is stabilised‚” Treasury stated.
It said SAA had submitted its request for a going concern guarantee during December 2015 which the National Treasury was currently considering.
“The approval of the guarantee is essential for finalising SAA’s financial statements on a going concern basis. Once finalised‚ the Annual General Meeting will be held and the Annual Financial Statements will be tabled in Parliament.”
The National Treasury said that its efforts‚ under the direction of Minister of Finance Pravin Gordhan‚ were focused on ensuring that:
- The airline is stabilised in the short term and has cash to meet its requirements
- Governance and leadership issues are addressed e.g. appointing a full board and speeding up the process of appointing a permanent CEO as these are essential for stabilising the airline
- The airline returns to a stronger financial footing in the medium to longer term.
“The goal in the longer term is to ensure that the airline is able to operate without support from the state‚ as should be the case with all State-Owned Entities‚” said Finance Minister Pravin Gordhan.
He added that SAA was open for business and would remain so.
SAA will remain open for business
South African Airways will remain open for business‚ the National Treasury assured on Wednesday‚ adding that it has been working closely with the airline to ensure that it has the cash it needs to meet its obligations with they fall due.
It said that steps taken included repatriating funds from overseas and efforts to secure further short-term bridging facilities.
Of the R14.4 billion in guarantees extended to SAA‚ the airline had R2 billion it had not utilised‚ which could be tapped for additional financing‚ it added.
“National Treasury has been in contact with several of the lenders currently providing SAA with unguaranteed short term facilities and indications are that the banks are not intending to withdraw their facilities at this time.
“Regular engagements with lenders have been taking place since 2014 and will continue until the airline is stabilised‚” Treasury stated.
It said SAA had submitted its request for a going concern guarantee during December 2015 which the National Treasury was currently considering.
“The approval of the guarantee is essential for finalising SAA’s financial statements on a going concern basis. Once finalised‚ the Annual General Meeting will be held and the Annual Financial Statements will be tabled in Parliament.”
The National Treasury said that its efforts‚ under the direction of Minister of Finance Pravin Gordhan‚ were focused on ensuring that:
- The airline is stabilised in the short term and has cash to meet its requirements
- Governance and leadership issues are addressed e.g. appointing a full board and speeding up the process of appointing a permanent CEO as these are essential for stabilising the airline
- The airline returns to a stronger financial footing in the medium to longer term.
“The goal in the longer term is to ensure that the airline is able to operate without support from the state‚ as should be the case with all State-Owned Entities‚” said Finance Minister Pravin Gordhan.
He added that SAA was open for business and would remain so.
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