South African Airways (SAA) is like a spendthrift son of a filthy rich Middle Eastern oil baron who goes on a lavish binge, gets broke and asks for his father’s assistance.
The troubled parastatal which just can’t get its finances in order, has once again asked government for a loan, barely two years after it was granted R5 bn in loan guarantees. The Minister of Public Enterprises, Lynn Brown disclosed this information in Parliament.
Said the Minister: “SAA has made an application for an additional going concern guarantee.”
Yet to breakeven in years, SAA has not made the most of the two year guarantee of five billion rands it got in exchange for vast restructuring.
The national airliner’s efforts to stabilise have been undermined by a weak currency and an aging fleet. The organisation might be forced to terminate services to some countries due to low business. Thus far, it has stopped flights to Malawi and other destinations could follow suit.