South African Airways’ (SAA) R6.8 billion debt will be resolved through a two-pronged approach Deputy President Cyril Ramaphosa said yesterday (Wednesday).
While responding to questions during the National Council of Provinces session in parliament, he pointed out that SAA’s significant debt would be maturing at the end of September this year.
“Firstly, any funds being considered will have to be appropriated through the special appropriation Bill [to be introduced in Parliament] which will in part assist the airline’s working capital and repay some of the maturing debt,” said Ramaphosa.
The second approach, he stated, was the current negotiations by SAA with its lenders aimed at extending the maturing debt beyond the deadline at the end of this month.
“Right now, SAA is right there facing headwinds and difficulties from an operational and profitability point of view,” said Ramaphosa. “In the past, it operated well and made profits and right now, it is facing great difficulties and needs the bail outs that only government can give it.”
He added that the exact details regarding the extension of debt and repayment of part of SAA’s maturing debt would be announced by the minister of Finance and the SAA board at an “appropriate time”.
