Another bailout for SAA, of R21bn, is not final yet, says government

The department of public enterprises says the draft rescue plans by the business rescue practitioners (BRPs) for the embattled South African Airways (SAA) are yet to be discussed by key stakeholders.

Earlier on Monday, the DA said the government was planning to approve the draft rescue plan to hand SAA another bailout, this time of R21 billion.

However, the department has dismissed this, saying in a statement that government, stakeholders, and employees have not discussed the plan yet, nor have decisions been made from some of the proposals by the rescue practitioners.

“President Cyril Ramaphosa on Sunday told members of the South African National Editor’s Forum that he saw a good future for the airline, which enjoy support right across the continent.

“The government has embraced the restructuring process as part of a new, dynamic, and financially viable airline that will serve South Africa’s economic and strategic interests,” the department said.

They will be reviewing the plan, explore various funding options, and communicate a decision in due course.

(Compiled by Sandisiwe Mbhele)

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