South African Airways will not present any financial results for the 2017/18 year because it’s technically bankrupt, and continues to burn through cash, according to a report by the City Press.
The paper reported that the group’s debt has ballooned to R28 billion, while it only has assets to the value of R13 billion, while its monthly costs are between R350 million and R450 million.
Sources told the paper that the airline is now considering selling off some of its businesses to help raise funds, as the banks will not longer lend it money.
Having already received over R19 billion in government bailouts, it is said the airline will need another R22 billion in bailouts between now and 2021.
A report on a turnaround strategy for the company says that it is salvageable, but requires drastic action. The same report placed much of the blame for SAA’s situation at the feet of its previous board – and former chair, Dudu Myeni, in particular.
It said that there was rampant corruption under her watch.