Corrects headline so as to add present lender complete
Corrects headline so as to add present lender complete
CAPE TOWN, Dec 5 (Reuters) – South African Airways (SAA) is prone to get a 2 billion rand ($136 million) enhance from the federal government and one other 2 billion from present lenders because it enters rescue proceedings from Dec. 5, a minister stated on Thursday.
“It should be clear that this isn’t a bailout. That is the supply of economic help in an effort to facilitate a radical restructure of the airline,” Pravin Gordhan, minister of public enterprises, stated in a press release.
SAA, which has not made a revenue since 2011 and has trusted authorities bailouts, suffered an worker strike final month that pressured it to cancel tons of of flights and pushed it to the brink of collapse.
On Wednesday, a deputy minister, declined to be recognized because of the sensitivity of the matter, informed Reuters he had acquired a letter from the secretary of the cupboard which stated President Cyril Ramaphosa had referred to as for a change of strategy on SAA and instructed the federal government to place the airline in a “voluntary enterprise rescue…