This archive report was first published on 6 December 2019.
Published on December 6, 2019, South African Airways (SAA) is on the verge of receiving a $272 million bailout from the government and banks.
The airline, which has been struggling to stay afloat, will be placed under business rescue, a temporary measure aimed at rehabilitating it and improving its chances of survival.
According to Pravin Gordhan, South Africa's Minister of Public Enterprises, SAA will receive 2 billion rand ($136 million) from existing lenders ahead of the business rescue, followed by another 2 billion rand at a later date through the national treasury.
The move is aimed at preventing further unplanned stoppages or cancellations of flights, and restoring confidence in the airline.
As stated by Pravin Gordhan, 'This is the optimal mechanism to restore confidence in SAA and to safeguard the good assets if SAA and help restructure and reposition the entity into one that is stronger, more sustainable and able to grow to attract an equity partner.'
South African Airways is the state-owned flag carrier of South Africa, with its headquarters in Airways Park at O.R Tambo International Airport. The airline operates flights to over 40 local and international destinations across the globe.
The airline has been on the brink of collapse since a crippling strike last month left it without enough money to pay salaries on time.
