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Desperate move: South African Airways to sale planes to avoid bankruptcy

Christian Fernsby |
South African airline SAA will sell several of its aircrafts and spare parts to avoid filing bankruptcy, local media reported.

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Topics: SOUTH AFRICAN AIRWAYS    PLANE    BANKRUPTCY   

The crisis of the South African Airways (SAA) caused last year rumors about the possible sale of its shares due to persistent financial problems, which require about 1.5 billion dollars in the next three years for its solution.

In this regard, last September the Department of Public Companies said to be aware of the SAA's capital needs, an issue that its leaders indicated was under consideration.

With the need to pay off loans received in 2017 and 2018, and after suffering a strike from their cabin employees that paralyzed their operations for several days at the end of last year, executives of the State company told reporters that the decision to face this situation is to sell seven Airbus and A340 and A340-600 aircrafts, as well as 15 spare engines.

The government's delay in providing financial support to the airline had as a response statements from the unions that warned that if these problems were maintained, the SAA could be forced to suspend flights and lack the liquidity to pay salaries, which they indicated would have 'fatal implications.'

Mashudu Raphetha, representing the National Transport Union said that tens of thousands of families would be left homeless and asked the government to prevent this from happening.

Finance Minister Tito Mboweni stated yesterday in a meeting with business leaders that the Treasury seeks additional financing for the airline.


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