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The South African – run public airline will need a total of 7.5 billion rand ($ 540 million) as of next month to finance its daily operations until the end of the year. 2019, said Tuesday a presentation to a parliamentary committee of the airline.
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 asking for better support from the shareholder to put in place for us, 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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