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By Esther Rose
Cape Town – South African Airways appears to be about to receive a new bailout after the National Assembly has approved a special credit bill for 2018, which will allow the domestic carrier to access a line of life of 5 billion rand.
The airline says it needs 21 billion rand to survive, while 9 billion rand is needed to cover the debt due by March 2019.
The majority of the opposition parties opposed the bailout, calling for the sale of the troubled airline for several years and allegedly "received several bailouts from the government in the past".
Deputy Finance Minister Mondli Gungubele said, "If the airline still needs government support, it is on the road to profitability." This contrasts sharply with the recent statement by Finance Minister Tito Mboweni at an investor conference in New York, in which he described the national carrier as "deficit", stating that it is unlikely that we will resolve the situation, so my opinion would be close to the bottom.
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