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Treasury said in a statement that the guarantee was valid for two years, starting from September 1.

SAA had requested recapitalisation, at an estimated cost of between R4-billion and R6-billion to enable the airline to strengthen its balance sheet and order new planes.

In terms of the guarantee, the SAA Board had to develop a turnaround strategy, to be approved by Public Enterprises Minister Malusi Gigaba and Finance Minister Pravin Gordhan.

SAA had to provide the public enterprises department and Gordhan with its financing strategy for its planned purchase of a short and long haul fleet.

A technical committee including representatives from Treasury and the DPE would monitor SAA's financial position and the implementation of its turnaround strategy.

Last week, chairwoman Cheryl Carolus and six other members of the SAA board resigned over lack of support from government.

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Tue Jun 18 08:46:00 SAST 2013 ::

Oct 3, 2012

Pointman

The "guarantees" over the years add up to a colossal amount. This is a warning to us - governments should not run business. If the mines are nationalised then they will also be seeking "guarantees" every year.
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Oct 3, 2012

!!Sinudeity!!

Just privatise SAA already. This nationalised BS is costing us R5 BILLION every 3 years.
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Oct 3, 2012

!!Sinudeity!!

Im guessing as soon as the billion rand loan goes through, the management will pay themselves big bonusses for 'reaching their targets'.
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Oct 3, 2012

Shredder

How the hell did we get into this mess?? I wonder if we should blame this on apartheid.
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Oct 3, 2012

MorenaWaPolelo

Cheryl Carolus and her board failed dissmaly and the fired themselves before they were fired good for them they have cost the country 5 billion and the new boards will obviously cost the country 10 billion unless they know they prove me wrong. This SAA is a huge risk and a very costly entity perhaps they should consider a PPP or shut the d.amn thing, its ran by idiotts who care only about lining pockets and come with excuses like petrol price went up, we all knew that petrol is gonna go up how come they did not know?
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Oct 3, 2012

MorenaWaPolelo

Shredder
How the hell did we get into this mess?? I wonder if we should blame this on apartheid
+++++++++++++++++++++++++++++++++
ITS BECAUSE OF APARTHEID COMRADE N PETROL PRICE IS ALSO BECAUSE OF APARTHEID HA HA HA HA HA HA HA HA LOL..............
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Oct 3, 2012

!!Sinudeity!!

Based on the bailouts that SAA received in 3 years. R10 billion could have been paid off on the eToll loan if the money wasnt pumped into this waste of money.

Who even flies SAA anymore?
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Oct 3, 2012

Tronn

Morenapolela-the biggest joke is that SAA was profitable during Apartheid and the Education system and Health system was not in a crisis and unemployment was lower and the petrol price was lower etc etc etc ....need I go?
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Oct 3, 2012

Pointman

@Tronn - SAA was never profitable during apartheid. It received a bailout regularly. So did the farmers and Afrikaans owned banks.
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Oct 3, 2012

TrueSAN

I wonder if all of the idiots that called SAA a success story isgoing to detract their statements or still live with blinkers.
The reality people is that the goverment cannot even run an antfarm successfully. How the hell can people think they can run the mines. SAA is a small entity compared to the mining industry
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