{"id":416999,"date":"2020-07-16T10:03:45","date_gmt":"2020-07-16T08:03:45","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=416999"},"modified":"2020-07-16T10:03:45","modified_gmt":"2020-07-16T08:03:45","slug":"government-commits-to-fund-new-saa-with-at-least-r10-billion-needed","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/416999\/government-commits-to-fund-new-saa-with-at-least-r10-billion-needed\/","title":{"rendered":"Government commits to fund &#8216;new&#8217; SAA &#8211; with at least R10 billion needed"},"content":{"rendered":"<p>The National Treasury has committed to support and source funding for South African Airways&#8217; new business rescue plan.<\/p>\n<p>This funding will result in the emergence of a new viable, sustainable, competitive airline, the Department of Public Enterprises said in a statement on Thursday (16 July).<\/p>\n<p>In terms of the business rescue plan, government as the sole shareholder of SAA is required to provide a letter of support for funding the plan.<\/p>\n<p>It is projected that R10.1 billion will be required to fund the plan. This money will be used to:<\/p>\n<ul>\n<li>Clean up and establish the balance sheet;<\/li>\n<li>Restructure the rest of the group entities that are not in business rescue;<\/li>\n<li>Provide working capital for the rest of the group&#8217;s entities;<\/li>\n<li>Create a stable and viable platform for a new restructured national airline.<\/li>\n<\/ul>\n<p>The restructuring will also include severance packages to about 2,700 SAA employees who will be retrenched, the Department of Public Enterprises said.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">DPE WELCOMES COMMITMENT TO SOURCE FUNDING AND SUPPORT NEW SAA <a href=\"https:\/\/t.co\/HdMfVXlSIW\">pic.twitter.com\/HdMfVXlSIW<\/a><\/p>\n<p>\u2014 DPE_ZA (@DPE_ZA) <a href=\"https:\/\/twitter.com\/DPE_ZA\/status\/1283666553704251392?ref_src=twsrc%5Etfw\">July 16, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&#8220;The DPE is cognisant that airlines across the world are in turmoil due to the Covid-19 pandemic. There are possibilities for airline partnerships to improve the scale and scope of the aviation industry and ensure continuity of value creation to the South African economy,&#8221; it said.<\/p>\n<p>&#8220;While maintaining a certain level of presence in the ownership of the new carrier, the DPE welcomes the attraction of a mix of local and international investor groups to provide the airline with technical, financial and operational expertise to ensure significant South African ownership whilst diversifying the investor base.&#8221;<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/government\/416177\/saa-2-0-gets-the-green-light\/\" target=\"_blank\" rel=\"noopener noreferrer\">SAA 2.0 gets the green light<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Treasury has committed to support and source funding for South African Airways&#8217; new business rescue plan.<\/p>\n","protected":false},"author":10,"featured_media":404425,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26],"class_list":["post-416999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/416999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=416999"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/416999\/revisions"}],"predecessor-version":[{"id":417013,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/416999\/revisions\/417013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/404425"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=416999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=416999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=416999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}