The government’s proposal to consolidate the three state-owned airlines, SAA, SA Express and Mango, is currently being considered by the economic cluster of ministers, the department of public enterprises has said.
She said SA Express has been “advised” that the recapitalisation has been approved. The Treasury confirmed that the amount was provided to the airline through the department of public enterprises. It was reported by Business Day last month that finance minister Tito Mboweni had refused to give the carrier the guarantee, believing it should be merged with SAA and both sold.
Financial challenges dogging SA Express saw its flights grounded for one day last month with industry sources saying this was due to the millions the airline owed the Airports Company SA in airport fees. Cumulative primary and secondary costs amounted to R240m as at end-May with personnel costs amounting to R77m , aircraft leases R44m , fuel R40m , and secondary expenses R25m.The airline’s turnaround strategy includes improving corporate governance, growing revenue and reducing costs, and improving operational efficiency.
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