South African Airways asked the government for R10 billion ($772 million) as part of a recapitalization plan aimed at returning the state-owned carrier to profit, according to Finance Minister Malusi Gigaba.<\/p>\n
The request was included in a one-year corporate plan submitted by the airline to the National Treasury in March, Gigaba said in a written reply to a question from opposition lawmakers, without saying whether he would agree to it.<\/p>\n
Any funds awarded by the state to SAA would come on top of this month\u2019s R2.2 billion injection to repay a loan by Standard Chartered.<\/p>\n
The National Treasury has ordered SAA to submit a turnaround plan that lays out steps toward a recovery before it commits to a further rescue deal.<\/p>\n
It was forced into covering the Standard Chartered loan first after the London-based lender refused to extend a repayment deadline before the end of June.<\/p>\n
The government is evaluating assets it could sell to pay for the bailout, Gigaba said earlier this month.<\/p>\n
SAA hasn\u2019t made a profit since 2011 and has previously survived on R19.1 billion of state-backed guarantees.<\/p>\n
The airline has been without a permanent chief executive officer since 2015 and the cabinet is considering Vodacom executive Vuyani Jarana for the role, a person familiar with the matter said this month.<\/p>\n