Struggling SAA gets R5bn state's bailout
SA AIRWAYS has been given a R5-billion guarantee by the government, the National Treasury said.
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.