SA Express promises to make better use of R300m guarantee
SA Express will now have to live up to its assurances after National Treasury threw the airline a lifeline by granting it a R300 million guarantee.
JOHANNESBURG - SA Express will now have to live up to its assurances after National Treasury threw the airline a lifeline by granting it a R300 million guarantee.
Treasury has granted SA Express the money from its contingency reserves.
The struggling airline was grounded last month after it failed to honour its payments to Airports Company South Africa (Acsa).
When SA Express was accounting to Parliament's Public Enterprises committee last month, CEO Siza Mzimela outlined how the guarantee would alleviate pressure off the airline.
"If we get the money today, we'd have two aircraft out in the space of a month, one in the space of a week [sic]."
SA Express has promised Treasury that the money would be better spent, unlike the R1.2 billion it received last year.
All of that money was swallowed by historic debt to Nedbank and Rand Merchant Bank.
For the airline to access the latest R300 million facility, banks needed the guarantee from Treasury.
SA Express' woes are far from over, as this money will not cover all of its debts.