South African Airways (SAA) received a R3.5bn loan to keep it going until the end of March.
This forms part of the R21,7 billion SA management believes is needs to make its turnaround strategy succeed.
SAA spokesperson Tlali Tlali confirmed the R3,5bn was received from local banks.
This comes after National Treasury gave R5bn to SAA in October last year to repay debt.
According to Tlali, SAA will not be profitable before 2021, but plans are on track to save the state-run airline from its money pen.
SA’s acting chief financial officer Deon Fredericks said in November that the airline needed the R3.5bn by March. According to Fredericks, SAA will suffer a R5.2bn loss in the current financial year to end-March, and a loss of R1.9bn in 2019-2020. However, SAA management has already warned the rise in oil prices could hamper its expected timetable for a return to profitability.
According to Tlali, SAA’s route between Johannesburg and London is suffering from severe competition, and locally, the route between Johannesburg and Port Elizabeth is not doing well. However, domestic market adjustments and regional and international route network and route optimization are part of SAA’s cost-cutting plan.
The original article can be read in Afrikaans on Netwerk 24
This report does not necessarily reflects the opinion of SA-news.