No More Bailouts for South African Airways, Airline May Shutdown

Posted by Lanre Aerodove on July 04, 2020 in Airlines Business COVID-19 | Comments : 0

There will be no more bailouts for SAA and the airline should be closed, the Treasury said in parliament on Friday

South African airways may finally short down as The National Treasury has made it clear on Friday, "there was no further action” planned to bail out struggling national airline South African Airways (SAA) except to settle guaranteed debt as attempts to revive the airline hang on a knife edge.

The South African government wants creditors to back a restructuring plan for South African Airways (SAA) but did not allocate new bailouts for the loss-making state airline in an emergency budget last week. In its strong statement yet that it doesn’t plan on giving SAA more bailouts, the National Treasury told lawmakers they would not provide any new money to the airline as they are insolvent and turnaround plans are yet to be finalised.