Lenders give SAA a whopping R3.5bn to keep flying into March – and beyond

EDINBURGH — South African Airways (SAA) is a failed business, yet the government and other lenders have kept handing over huge sums to keep the national airline flying. Many onlookers believe it is time to ground the airline rather than throw good money after bad for sentimental reasons. But SAA boss Vuyani Jarana is adamant that the organisation can be profitable. SAA has revealed that it has secured the R3.5bn loan required to keep operating until the end of the financial year in March, says Fin24. It needs many more billions to cover its cash flow problems while a turnaround strategy is implemented over three years. SAA spokesperson Tlali Tlali told Fin24 the R3.5bn, secured from local lenders, was part of the R21.7bn funding requirement. Meanwhile, the London-headquartered Financial Times has reminded its readers that cash-strapped state entities like SAA threaten to overwhelm the country's finances. – Jackie Cameron

By Thulasizwe Sithole

South Africa's struggling state airline is making progress in talks to renegotiate debts due early this year as it seeks to avert the threat of closure, reports the Financial Times.

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