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SAA granted USD600m government guarantee

3-Oct-2012 11:48 AM

South African Airways (SAA) was granted a ZAR5 billion (USD596.8 million) guarantee by South Africa's Government for a two year period from 01-Sep-2012 (Mail & Guardian/SAPA/Reuters/AFP, 02-Oct-2012). The National Treasury said, "the guarantee will enable SAA to borrow from the financial markets, thus ensuring that the airline continues to operate as a going concern." The guarantee is conditional on SAA's board providing a turnaround strategy, to be approved by the Department of Public Enterprises and National Treasury. The strategy would include details of financing for the airline's planned purchase of short and long-haul aircraft. The Department of Public Enterprises and National Treasury will monitor the airline's financial situation and the implementation of the strategy.