Is the end nigh for South African Airways?

SOUTH AFRICA - Report 15 Nov 2019 by Iraj Abedian

The embattled state-owned entity (SOE) South African Airways (SAA) is on the brink of collapse. It is understood that SAA desperately needs around R2 billion in order to fund its operations until the end of the current financial year, but Finance Minister Tito Mboweni has made it clear on several occasions that there is great opportunity cost associated with monies used to constantly bailout SAA. Also, last month’s Medium Term Budget Policy Statement (MTBPS) once again highlighted the fact that struggling SOEs, including SAA, are among the greatest threats to the fiscus. Minister Mboweni stated during the MTBPS speech that going forward, should any of the SOEs need financial assistance, all cash flow support from the government would be in the form of loans.​

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