Sa express financial woes
SA Express hopeful for R200m bailout from Treasury
Acsa lifted its three-day suspension of the airline on Friday after it made a partial payment on its R71 million debt.
The decision was taken due to the airport's sub-standard rescue and firefighting response times, as well as a lack of aerodrome emergency management systems.
The SOE has been struggling with major financial issues resulting in numerous governmental bailouts over the past couple of years.
The embattled airline has said it needs a bailout of least R1.74 billion to keep its aircraft flying.
Minister of Public Enterprises Pravin Gordhan has told Parliament that all the processes required to get the airline flying again are being finalised.
Fedusa says it will appeal to Public Enterprises Minister Pravin Gordhan to provide emergency funding.
Speaking exclusively to Eyewitness News on this issue, SA Express CEO Matsietsi Mokholo said there was pure disregard for internal processes when this deal was signed.
Acting CEO Matsietsi Mokholo says SA Express has been dealing with several growing and simmering challenges, including financial constraints, leadership stability and governance issues.
Speaking exclusively to Eyewitness News on some of these issues, Mokholo highlighted serious financial challenges that the company is facing.
Acting CEO of SA Express Matsietsi Mokholo spoke candidly about the state of the airline which was grounded for 30 days.
The Civil Aviation Authority suspended the airline's operating permits following an audit which uncovered severe cases of non-compliance.
The airline, however, already has a 10-year contract to receive Jet Fuel from South African Airways (SAA).
The Civil Aviation Authority's director Poppy Khoza says flights will remain grounded until there's a guarantee on safety.
Public Enterprises Minister Pravin Gordhan revealed on Thursday the embattled carrier paid over R5.7 million to the Gupta-linked Trillian capital without following due process.
The Public Enterprises Minister says SA Express being grounded is one of the consequences of corruption and the government is working to root it out.
Public Enterprises Minister Pravin Gordhan revealed on Thursday that the airline paid R5.7 million to Trillian Capital without following proper processes.
The airline is technically bankrupt and it’s affecting its ability to keep aircraft in the sky and pay for much-needed repairs.
Government’s plans to amalgamate the airline with SAA and Mango have created uncertainty in the approach it should take in turning around the airline.
SA Express paid Trillian Capital Partners R5.7 million in 2016 for a funding plan and balance sheet optimisation.