South African Airways (SAA) is facing the prospect of filing for bankruptcy protection.
According to information given to the country’s parliament, the national carrier has run out of money and is teetering on the edge of bankruptcy.
It is thought the national carrier may soon be unable to pay salaries, the BBC reports.
The cash-flow statement shown to MPs suggests the airline is haemorrhaging cash and needs a 792m-rand (£45m) bailout from the government by October.
The airline has lost money every year for the past seven.
The treasury paid out £125m last month to settle a loan from Standard Chartered Bank‚ which the bank had refused to extend.
The country’s finance minister, Malusi Gigaba, said SAA asked the treasury in March for a £560m recapitalisation and is expected to give an answer by October.
If the airline enters bankruptcy protection it would limit the amount of money it pays to creditors.
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.