SA Express, ACSA agreement allows flights to resume

The airline ran into trouble when Airports Company of South Africa (ACSA) demanded some payment of its R71 million debt.

Picture: SA Express.

JOHANNESBURG - SA Express has confirmed that flights have resumed operating after being grounded for about three days.

The airline ran into trouble when Airports Company of South Africa (ACSA) demanded some payment of its R71 million debt.

SA Express has been facing major financial challenges and have now secured a R300 million facility from the banks.

However, Treasury needs to grant the state-owned entity R200 million for it to come into use.

The airline was granted a R1.2 billion government guarantee in 2018 but Deputy Public Enterprises Minister Phumulo Masualle told Eyewitness News that most of that money was swallowed by historic debt.

It's understood an agreement was reached between ACSA and SA Express in meetings on Friday lifting the suspension.

Sa Express' CEO Siza Mzimela made it clear to Parliament on Thursday that they needed the money not to clear their debt but just to keep themselves operating.

The airline has been allowed to return to normal for now.