The South African minister of state-owned companies said South African Airways (SAA) will undergo a radical restructuring to ensure its financial viability.
Pravin Gordhan said there is no alternative for the struggling state-owned airline that has suffered cumulative losses of more than US $ 2 billion over the past 13 years and realized no profit since 2011.
He said that discussions with investors are ongoing “in order to obtain the necessary funds to cover the operational and structural transition in the coming months”.
Mr. Gordhan expressed confidence in the airline’s efforts to restore sales. “So we reassure customers and encourage them to buy their tickets with confidence SAA is committed to staying in business.
Commercial banks are ready to lend to SAA, but they demand that the government guarantee repayment.
The South African Minister of Public Enterprises has to decide whether he can provide this guarantee.