https://www.engineeringnews.co.za
Cutting|Financial|Operations
Cutting|Financial|Operations
cutting|financial|operations

SAA needs R7.5bn in working capital from next month

SAA needs R7.5bn in working capital from next month

Photo by Reuters

27th November 2018

By: Reuters

  

Font size: - +

Cash-strapped State-owned airline South African Airways (SAA) will need R7.5-billion from next month to fund day-to-day operations into 2019, a presentation by the airline showed on Tuesday.

SAA, which has not generated a profit since 2011, survives on State guarantees and is regularly cited by credit ratings agencies as a drain on the government purse.

It has drawn up an austere turnaround plan that includes cutting jobs and routes in an effort to turn a profit by 2021 and convince lenders to restore credit lines.

The airline said lenders have refused to lend the company R3.5-billion to plug a liquidity hole from December unless they received additional commitments from the government, the presentation showed.

In addition, the national carrier will need R4-billion from March next year, the presentation showed.

"Currently, we don't have an optimal capital structure and, as a result of that, we are dependent on debt which is not good . . . the banks are pushing now for much better support from the shareholder to put in place for us," said SAA interim CFO Deon Fredericks.

SAA is expected to make a R5.2-billion loss in the 2019 financial year and another R1.9-billion loss in 2020 before swinging into a profit a year later, the presentation showed.

Edited by Reuters

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.346 0.4s - 163pq - 4rq
Subscribe Now