Adds element, context
Adds element, context
JOHANNESBURG, March 19 (Reuters) – The directors of South African Airways (SAA) hope handy management of the enterprise again to administration by the top of the month, the state-owned airline mentioned in a letter to affected events seen by Reuters.
SAA has been underneath a type of chapter safety since December 2019, and its fortunes worsened throughout the COVID-19 pandemic. All operations had been mothballed in September 2020 when funds ran low.
The letter, dated March 18, mentioned SAA’s board of administrators and administration had been engaged on a plan to renew flights, with out giving a date when that may occur.
The directors mentioned that they had acquired 7.eight billion rand ($529 million) out of a 10.5 billion rand bailout allotted within the authorities’s October mid-term funds.
Out of that, round 360 million rand has gone in the direction of paying unpaid salaries, 1.5 billion rand has been spent on severance packages and 400 million rand has been transferred to collectors who lent cash after the airline entered administration.
Different funds are earmarked for working capital when SAA restarts operations and to pay for passengers who’ve already paid for tickets however not but flown.
As soon as additional funds to collectors and staff have been made or supplied for and a receivership arrange, the directors can relinquish management of the enterprise.
The directors mentioned SAA’s debt had fallen by 35.7 billion rand since they took over and that its workforce had been reduce from 4,700 to roughly 1,000.
($1 = 14.7496 rand)
(Reporting by Alexander Successful. Enhancing by Nqobile Dludla and Mark Potter)
(([email protected]; +27 10 346 1076))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.