Government expected to support restructured SAA until March 2024
On top of being expected to raise R10.3 billion for the restructured South African Airways (SAA), the rescue practitioners’ final plan also proposes that the state support the new airline until it becomes profitable and self-sustaining — which is only likely to be in 2024.
Business Rescue Practitioners Les Matuson and Siviwe Dongwana released the long-awaited 110-page rescue plan on Tuesday evening. The plan was released a day later than the June 15 deadline the BRPs were granted in their fifth extension since December 2019.
Read: SAA rescue plan extension granted
Over the past ten years, SAA has been under severe financial distress and has not made a profit since 2011, incurring R27 billion in losses since 2012.
The final plan puts the state’s bill for settling SAA’s current liabilities and funding the restructured airline at R26.7 billion.
This amount includes the R16.4 billion that was allocated in the February budget to pay off government-guaranteed debt and interest over the next three years.
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