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SAA is expected to record a loss of 5.2 billion rand for the 2019 financial year and 1.9 billion rand in 2020 before making a profit one year later, as shown in the presentation.
DOSSIER: A South African Airways flight takes off while another is parked in a bay on the tarmac of OR Tambo International Airport in Johannesburg. Picture: AFP.
CAPE TOWN – The South African Airways (SAA) nationwide cash-backed airline will need a total of 7.5 billion rand ($ 540 million) as of next month to finance its operations Daily until 2019, briefing presented to a parliamentary committee by the airline showed on Tuesday.
SAA, which has not generated a profit since 2011, survives thanks to state guarantees and is regularly cited by credit rating agencies as a drain on public finances.
He has developed an austere recovery plan that includes cutting jobs and roads to make a profit by 2021 and convincing lenders to reinstate credit lines.
The airline said the lenders had refused to lend 3.5 billion rand to the company to fill a liquidity gap from December, unless the government undertakes new commitments, the presentation revealed. .
In addition, the national carrier will need 4 billion rand ($ 288 million) from March next year, the presentation revealed.
"Currently, we do not have an optimal capital structure and, therefore, we depend on the debt, which is not good … The banks are now insisting that the shareholder provide better support for the implementation Said Deon Fredericks, Acting CFO of SAA.
SAA is expected to record a loss of 5.2 billion rand for the 2019 financial year and 1.9 billion rand in 2020 before making a profit one year later, as shown in the presentation.
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