Treasury will give SAA another cash bailout in 2017: report
Outgoing Treasury Director general Lungisa Fuzile has confirmed to parliament’s standing committee that South African Airways will receive another cash injection before the end of 2017, Reuters reports.
Fuzile noted that while no set amount had been agreed upon between government, Treasury and the airline, it had already been decided that operations at the troubled national carrier would continue.
“The processes underway to fix the business in terms of its operations are quite advanced,” said Fuzile.
“We have our own monitoring meetings with them every week looking at cash flows and processes, and looking to change effectiveness and efficiency of business. A lot of good work is being done there.”
Speaking at the same standing committee on finance, finance minister Malusi Gigaba noted that while a turnaround at the national carrier was urgently needed, it was still possible to “fix” the national carrier.
Gigaba indicated that he was looking forward to turning around SAA’s financial position, route networks, maintenance issues, and finally stabilising the SOE’s leadership positions.
Information provided to the Standing Committee on Finance (SCOF) by the South African Airways (SAA) board in March 2017 revealed that the airlines losses were even worse than previously reported – sitting at R4.5 billion for 2016/17.
Read: Things get worse for SAA as losses climb R1 billion higher in just 10 days
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