South African Airways (SAA) board chairperson Derek Hanekom has rejected claims that the airline will undergo privatisation.
The SAA board chair emphasised the need for 'serious investment' to support the airline's long-term plans.South African Airways board chairperson Derek Hanekom has rejected claims that the airline will be privatised, despite its need for a R3 billion capital injection.
“That form of capital injection could be by way of another investor share equity partner,” he said on Tuesday.“We are engaging with banks on not to get a loan at this point but a loan facility as a kind of a buffer because while it is debt free as you said in your opening, the cash reserves are low and makes us quite vulnerable should there be any shock given the funds are not available.
“We are not in the situation we found ourselves in when we in business rescue or just came out of business rescue. There is a clear distinction between privatising and getting investment.” “So I think our responsibility under the guidance of the shareholder is to do what’s best for our country, what’s best for our economy and in this specific case, what’s best for the airline.“So there’s no question of privatisation; I don’t believe it’s being debated at this stage, but there’s a common understanding that if we are going to grow as much as we would like to grow, there will have to be some kind of investment.
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