Today's Labour News

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saa thumb medium95 76BL Premium reports that according to SA Airways (SAA) CEO Vuyani Jarana, commercial banks have in principle approved R3.5bn of the funding required to keep the national airline operating until April.  

He was speaking on the sidelines of the India/SA Business Summit in New Delhi at the weekend.  Jarana said he saw “no reason why” the government and the banks would not continue to back the airline as it has been delivering on the targets it has set and added that they could appreciate that “we are executing under very difficult conditions.”  The airline, which received R5bn from the government in October, requires R21.7bn in funding to implement its turnaround plan by 2021.  In addition to the R3,5bn, it must raise a further R4bn in March as well as re-finance or pay back R9.2bn in maturing loans.  SAA sources said the banks approved in principle the funding totalling R3.5bn in January, but still have to get internal approvals for the credit lines from their respective risk committees.  That might yet prove an obstacle, as banks have been unwilling to lend to SAA since July 2017, with the exception of short-term bridging finance.

  • Read Jana Marais’ report on this story in full at BL Premium (paywall access only)

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