Public enterprises minister says tough decisions could be made for cash-strapped national airline
Public enterprises minister Pravin Gordhan. Picture: TREVOR SAMSON
“If some tough decisions need to be made, we’ll make them,” public enterprises minister Pravin Gordhan said in a speech at a conference in New York on Thursday. SAA is “not too big to fail.” The government will repay loss-making SAA’s outstanding government-guaranteed debt of R9.2bn over the next three years, the National Treasury said in the medium-term budget policy statement in October. Lenders are demanding a firm repayment plan as a condition for agreeing to extend more funding, SAA has said.
The state is talking with potential investors in the airline to ease the continuing burden the company puts on the national budget. “I am pleased to learn that there are conversations involving South African Airways and potential equity partners, which would liberate the fiscus from this SAA sword of Damocles,” finance minister Tito Mboweni said in October.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SAA is not too big to fail, says Pravin GordhanPublic enterprises minister says tough decisions could be made for cash-strapped national airline
Read more »
SAA ON THE BRINK: SAA teeters as union action grounds planesSouth African Airways flights have been cancelled as a strike looms. Between proposed restructuring that could lead to mass retrenchments and deadlocks over wage negotiations, here is what you need to know about where the airline stands.
Read more »
'This situation is hopeless': Mzansi weighs in on SAA messSouth Africans have united online to debate the 'chaos' at SA Airways (SAA) after a turbulent week
Read more »
Business Maverick: Brinkmanship as SAA and unions head for showdown in latest ailing SOE scrapThe latest attempt to restructure an ailing SOE has sparked a strike threat from unions. South African Airways has cancelled virtually all of its flights Friday and Saturday in anticipation of the planned strikes to protests its plans to cut jobs. This could backfire badly on the unions if it results in the permanent grounding of SAA.
Read more »