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JOHANNESBURG — In his strategic review newly instated South Africa Airways CEO Vuyani Jarana said in order to keep the airline in the skies, it would need a further R21 billion by 2021, by which time it ‘should’ break even. A number available now for a private-sector partner, following the national carriers statement that it is urgently searching for an investor. And while taxpayer coffers are running dry, it seems the move was ignited by a business rescue application by Solidarity. The application has since been withdrawn but can be reinstated if the process is halted. At one point last year the airline was losing R12m per day but JSE-listed Comair shows that profitability over an extended period is a reality, given its unbroken record of profit since inception 71 years ago, last reported in February. So while Jarana tries to seal further losses at the state owned airline, it would take a brave private-sector player to shoulder such losses up front with break even only expected in three years time. – Stuart Lowman
The application runs to more than 1,000 pages and counts two former SAA CEOs, Nico Bezuidenhout and Monwabisi Kalawe, as contributors, the union said. Jarana took the helm in November, the seventh head of the airline since the start of the decade.
SAA last month fired its previous CEO and ex-chief financial officer for misconduct. Under their leadership, the airline failed to properly value assets or correctly record irregular or wasteful expenditure, according to an Auditor General report released earlier this year.
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