JOHANNESBURG – The government is continuing with efforts to locate funding sources for struggling South African Airways and is assessing proposals from several potential strategic equity partners, the Department of Public Enterprises said.
Government has told administrators of South African Airways (SAA) that there is a “clear cabinet commitment” to provide the state airline with R10.5 billion ($650.7 million) of funds, one of the administrators said on Friday.
The administrator told an SAA creditor meeting that the government’s communication had the support of National Treasury but the timelines and mechanisms for the funding were yet to be finalised.
This comes after SAA called for an urgend creditor meeting yesterday which took place today, as funding for the airline’s restructuring has not been received as anticipated.
Last Friday, it appeared that plans for the new-look SAA was heading for more turbulence as business rescue practitioners (BRPs) gave the government until this week to fund the rescue process or face liquidation.
SAA rescuers Les Matuson and Siviwe Dongwana last Thursday warned the government had until this week to determine whether to continue with rescuing the airline as its existing funds were near depletion.
“The remaining portion of the short-term funding required by the company has not yet been made available to the company,” the rescuers said.
“The BRPs have been engaging tirelessly with the government to ensure that this funding is made available to the company timeously.”
REUTERS / BUSINESS REPORT