SA Express accuses SAA of failing to settle bills for 2 months
The Development Bank of Southern Africa stepped in on Tuesday by pledging R3.5 billion for the cash strapped airline.
When the national carrier was placed into business rescue in December, both government and creditors committed to jointly provide R4 billion in funding.
Local commercial banks had provided R2 billion in post-commencement financing, however, government had not been able to keep its end of the bargain. The Development Bank of Southern Africa (DBSA) stepped in by pledging R3.5 billion for the cash strapped airline.
SA Express said it was hoping the funds from the DBSA meant SAA would settle its debt.
SA Express spokesperson Mpho Majatladi said: “Now that SAA has received funds, SA Express trusts that paying these revenues will be prioritised. The said revenues are entitled to SA Express. SAA [is] purely an agent for SA Express.”
The struggling airline cancelled some local and international flights to cut costs.