(3 minutes read)
· South Africa’s Minister of Public Enterprises Pravin Gordhan and Finance Minister Tito Mboweni have committed to obtain funding for the state-owned airline’s short, medium and long term financial requirements
· The rescue plan requires about R16.3 billion in new unding for restarting operations (R2.8 billion for July and August) and severance packages for employees (about R2 billion)
South Africa’s Minister of Public Enterprises Pravin Gordhan and Finance Minister Tito Mboweni have committed to obtain funding for the state-owned airline’s short, medium and long term financial requirements.
This commitment is communicated to the business rescue practitioners through a letter sent to the business rescue practitioners of South African Airways late on Yesterday (Wednesday) evening. The letter, however, does not mention any particular amounts. The business rescue practitioners wanted a clear commitment from the government to bail out the airlines.
The department of public enterprises has repeatedly said in the past its aim is to create a viable and sustainable new South African national airline. The rescue plan requires about R16.3 billion in new funding for restarting operations (R2.8 billion for July and August) and severance packages for employees (about R2 billion).
