BUSINESS MAVERICK: SAA’s airline operations suspended as funding dries up

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Business Maverick understands that the latest suspension also affects operations of SAA subsidiaries including low-cost carrier Mango Airlines, SAA Technical, Air Chefs and SAA Cargo.

The aviation operations of SAA have been grounded again because the government has failed to raise R10.5-billion in urgent funding to restart the troubled state-owned airline.

Earlier in September, the SAA rescue practitioners, Siviwe Dongwana and Les Matuson, told creditors that the airline’s financial position was “dire” because the available working capital to fund its operations is “near depletion”. The pair have been in talks over the past two weeks with the Department of Public Enterprises, National Treasury and commercial banks about assembling funds for the airline’s business rescue plan.

Some of the banks, which are already exposed to SAA because they are the airline’s largest creditors, were unwilling to provide SAA with further support because it is not creditworthy given its dire financial situation.

 

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Dont worry, gordhan's quivvering jowls will soon signal from the Parly channel how government wont give up the ship (ghost)

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