South African Airways (SAA) is yet to receive funding from the Government, money that was supposed to keep it afloat and prevent its liquidation.
In December last year, the government had promised to inject $139 million into the airline even as it transitioned into the business rescue phase. This was a move that ensured there were no further unplanned stoppages or cancellations of flights.
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However, as the January 19th deadline fast approaches, the airline has not received the money, raising fears that it may face flight suspensions and liquidation.
However, Bloomberg reports that this has occurred because the National treasury has been unable to sell assets quickly enough to fund the airline’s needs.
Given the serious financial and operational challenges facing South Africa, the Department of Public Enterprises together with the National Treasury, is working closely with the management of South African Airways and the business rescue practitioner have arrived at a point where certain decisions need to be taken about what to do.
South Africa Finance Minister, Tito Mboweni
South African Airways is the state-owned flag carrier of South Africa. Its headquarters are in Airways Park at O.R Tambo International Airport. The airline links over 40 local and international destinations across Africa, Asia, Europe, North America, South America, and Oceania. Its base is at Johannesburg International Airport.
The airline has been on the brink of collapse since a crippling strike in November 2019 left it without enough money to pay salaries on time.
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