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SAA still ‘far down the line’ on equity partner discussions
In addition to the money needed to fund its turnaround plan, the airline also has to pay its lenders R9.2 billion by March.
CAPE TOWN – South African Airways (SAA) board chairperson JB Magwaza says the airline is far down the line with preparations to begin discussions for a strategic equity partner.
But, he says the board doesn't believe this is the route the struggling airline should follow.
Parliament's Standing Committee on Finance has on Thursday heard the airline will need R12.5 billion over the next three years to execute its turnaround plan.
In addition to the money needed to fund its turnaround plan, SAA also has to pay its lenders R9.2 billion by March.
#SAA board chairperson JB Magwaza says liquidity and going concern issues persist at the airline. LD
— EWN Reporter (@ewnreporter) June 7, 2018
#SAA An oversight committee led by deputy finance minister Mondli Gungubele has met six times to review liquidity problems and find a strategic equity partner. LD
— EWN Reporter (@ewnreporter) June 7, 2018
Magwaza says the airline’s oversight committee is ready to engage with Treasury on options for a strategic equity partner.
“There are certain decisions that have to be made by government that will guide us in terms of how much of SAA are you prepared to sell.”
But he says the board is not in support of selling off the airline.
“We believe there’s a role that SAA can play and should play in the economy of South Africa.”
#SAA Magwaza reluctant to reveal salaries of top executives at the request of the DA's Maynier....says it's "market sensitive". Maynier disagrees...says this is disclosed in annual report anyway. LD
— EWN Reporter (@ewnreporter) June 7, 2018
Chief executive Vuyani Jarana says he also doesn’t believe business rescue is a suitable option for the airline, because internationally it would be interpreted as a step towards bankruptcy.
#SAA CEO Vuyani Jarana going through Q4 financial results - loss for the quarter R1.2bn more than expected.....attributed to foreign exchange movement and lower passenger numbers. LD
— EWN Reporter (@ewnreporter) June 7, 2018
(Edited by Thapelo Lekabe)
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