Jarana: SAA's outstanding debt stands at R13.8 billion
New SAA CEO Vuyani Jarana says SAA will still be about R9 billion in the hole even after the government’s R10 billion bail out is fully paid by the end of March next year.
CAPE TOWN - New South African Airways (SAA) CEO Vuyani Jarana says the national airline’s outstanding debt stands at R13.8 billion as of this month.
It's debt exposure in April was R16 billion.
Jarana says SAA will still be about R9 billion in the hole even after the government’s R10 billion bailout is fully paid by the end of March next year.
Jarana and members of the new board are briefing Parliament’s Standing Committee on Finance for the first time.
Jarana says that the airline is exposed to debt of nearly R14 billion as of this month and is due to pay a further R4 billion to Citibank and domestic lenders in March.
Jarana’s at the helm of efforts to position SAA to trade itself out of the quagmire it is in.
"Even when the capital injection that’s been given by government, the R10bn, is fully paid by the end of March 2018, SAA will still face a negative equity position of about R9bn."
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Chief financial officer Phumeza Nhantsi says SAA’s losses are projected to grow to R4 billion from a previous forecast of R2.8 billion.
The airline is set to have its annual general meeting on 19 January next year and tabled its annual financial
statements with the Auditor-General this week.
Nhantsi says maturing loans have been extended to March 2019.
(Edited by Shimoney Regter)