South African Airways is looking at ways to roll over R9.2 billion rand of debt by March as the loss-making state-owned carrier works to make more routes profitable, Chief Executive Officer Vuyani Jarana said.<\/p>\n
The airline has emerged as a major headache for President Cyril Ramaphosa\u2019s government as it battles to ease the burden of state-owned companies on public finances.<\/p>\n
The National Treasury allocated R5 billion to SAA in last month\u2019s mid-term budget to help repay debt, but told the carrier that it\u2019s responsible for talks with creditors to restructure the full amount.<\/p>\n
Jarana has come under renewed pressure since the latest bailout, with Finance Minster Tito Mboweni using an appearance at a New York investment conference to question whether it might be better to simply shut the airline down.<\/p>\n
That statement has had negative consequences, with some passengers canceling trips, the CEO said in an interview on Johannesburg-based Talk Radio 702 on Monday.<\/p>\n
“It\u2019s important that we get our messaging right.” Defending his record since taking the top job a year ago, Jarana said previously unprofitable domestic and regional routes are now making money — except for Entebbe in Uganda.<\/p>\n
That said, the airline will take three years to break even. \u201cThere are no miracles or silver bullet.\u201d Public Enterprises Minister Pravin Gordhan also weighed in on Monday, telling SAA staff that while he believes the carrier can survive, \u201csome radical things need to be done.\u201d If nothing changes, \u201cyou\u2019ll be carrying empty seats, not passengers,\u201d he told them.<\/p>\n