JOHANNESBURG (Reuters) – South Africa’s government has approved an additional loan guarantee of 6.488 billion rand ($562 million) for troubled national airline SAA, the Treasury said on Thursday.
The latest guarantee takes the total guarantees given to South African Airways[SAA.UL] to 14.4 billion rand, to help turn around the loss-making carrier.
The guarantees were granted on condition that the airline provides details of a comprehensive 90-day rescue plan within a month, the Treasury said in a statement.
SAA should also cut operating costs and strengthen governance, internal controls and working capital management, Treasury added.
In October, the government said it would consider a strategic partner for SAA. The airline said last year it was finalising plans to replace up to 30 planes in a long-haul fleet upgrade.
