By Zuko Komisa
Takatso Aviation welcomes R1 billion SAA allocation.
The SA government has announced a further R1 billion ($55 million) “to assist the carrier with its business rescue process.”
Minister Godongwana said that the allocation was made as part of the government’s dedication to the business rescue effort that SAA left in April 2021.
It will be used to pay off outstanding debts, particularly those from the time SAA was put in business rescue in December 2019, such as the final dividend payment to creditors and the refund of legacy un-flew tickets to affected passengers.
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Kaya Biz with Gugulethu Mfuphi spoke to Thulasizwe Simelane – Takatso Aviation Spokesperson, about the R 1 billion allocation and how the fund would help with the operations of SAA.
LISTEN TO THE FULL CONVERSATION HERE:
SAA RECEIVES R1bn TOWARD HISTORICAL DEBT
— SAA – South Africa (@flysaa) February 23, 2023
Johannesburg (23rd February 2023)–SAA welcomes the announcement by Finance Minister, Enoch Godongwana, of a R 1 billion allocation to settle a portion of the outstanding obligations on the implementation of SAA’s 2020 Business Rescue Plan pic.twitter.com/7jgnkYzTwi
“SAA’s operations have progressed positively since the airline emerged from business rescue, and as reported to Parliament earlier this month, SAA is no longer technically insolvent, a milestone which we reached a year earlier than projected” said Professor John Lamola, executive chairman and CEO of SAA,
The initial R 3.5 billion that SAA needed to pay off all of the debt that the Business Rescue practitioners had ring-fenced into a Receivership was reduced by the R 1 billion allocation.
The total balance anticipated from the National Treasury has been decreased to R2.586 billion as a result of SAA’s financial success and the creative ideas of its management team.
“SAA has reached a point where we cover our operating costs. It must be emphasised that the allocation announced relates only to historical debt. These funds are not meant to bolster the business plan we are currently executing.” says Chief Financial Officer, Fikile Mhlontlo,
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