SAA loan raises questions

Government response on the loan granted to SAA being questioned by the Democratic Alliance.

South African Airways plane. Picture: AFP.

JOHANNESBURG - Questions have been raised on Sunday afternoon about why government did not respond earlier to warnings about the state of financial affairs at South African Airways.

The Sunday Times reported that an emergency short-term loan of around half a billion rand was secured by SAA to avoid grounding airplanes and cancelling flights.

The loan has to be repaid within three months.

Finance minister Pravin Gordhan and Public Enterprises minister Malusi Gigaba reportedly signed a guarantee for it.

Meanwhile, the DA's Natasha Michael said the airline was in a state of severe crisis.

The airline has received bailouts in the past and has seen a recent change in leadership.