ASA needs 3.5 billion rand by March, says interim chief financial officer

SAA Acting CFO Deon Fredericks told Parliament that the troubled national carrier needed 3.5 billion rand for purchases for the next four months and needed to find the necessary money.

Fredericks was part of a delegation that briefed the SOE portfolio committee Tuesday morning on his views on the domestic carrier's turnaround strategy.

SAA worked closely with the National Treasury and the Public Enterprise Department to ensure its profitability.

The national airline received a state guarantee of 4.8 billion rand last year, and opposition MPs fear that the trend shows no signs of a decline. The 5 billion rand received from the national treasury in the medium-term fiscal policy statement was intended to repay the debt.

In a frank account of the entity's finances, Fredericks told the portfolio committee that, even though SAA had received the recapitalization of 5 billion rand from the national treasury, this would be used to pay a bridge financial debt of the same amount .

He added that the company would need more than 3.5 billion rubles to continue making its purchases, as planned, by the end of March 2019. He did not specify what was to be bought .

"We expect a flow of 3.5 billion rand by March 2019. We have received a recapitalization of 5 billion rand and this will go directly to the payment of financing facilities," Fredericks said.

Fredericks said the group predicted losses of 5.2 billion rand for the 2018-2019 fiscal year and 1.9 billion euros for the 2019-2020 fiscal years, after recording a net loss of 5.7 billion rand for the 2017-2018 financial year.

"We are hoping for a better result for our fuel expenses, the profit lost before the tax projections is a loss of 5.2 billion rand, because of possible changes in fuel prices and some of the changes we are putting in place. we hope to change that and lower overall figure to that, "Fredericks said.

Fredericks urged MPs and the media to be cautious when they blamed the national carrier, saying that reckless statements could have a significant impact on the company's reputation and, by extension, on its ability to attract customers and funds.

"We will need shareholder support to meet these requirements, and any negative feedback from one quarter to the next on the SAA will have a significant financial impact on the SAA and agents will review and reorient their reservations. All about trust, "Fredericks said.

SAA Vice President Vuyani Jarana said that the shortcomings of the purchase agreements were one of the main challenges that the national carrier was seeking to improve its finances, in line with the company's recovery strategy.

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