South African Airways to receive a further guarantee from Treasury
SAA’s application for a going concern guarantee of R5bn has been approved by the National Treasury, enabling the airline to table its 2014/15 and 2015/16 financial statements.
Finance Minister, Pravin Gordhan, said the application had been approved with certain conditions that include:
- The primary focus of the Board must be to return the airline to financial sustainability;
- SAA’s strategy must be strengthened and alignment with other state-owned airlines ensured;
- SAA must implement more aggressive cost-cutting initiatives as in areas of fuel; aircraft ownership; labour; maintenance, repair and overhaul and procurement;
Other conditions were also outlined by the Minister.
(source: Tourism Update)