JOHANNESBURG – SA Airways chairperson of the board implementation committee Martin Kingston on Wednesday warned that the embattled airline’s liquidity was on the brink of collapse.
Kingston said lenders would not advance the airline any further credit without the security and support of a sovereign guarantee. Kingston said SAA was in talks with the National Treasury to use the surplus guarantees it had in its balance sheet, but the Treasury wants to be satisfied that the money was for appropriate use. “Unless we are able to secure guarantees from the National Treasury – and we are in discussions with them – then the board will have to recommend to the government that actually it be placed into liquidation, because we have no confidence that we are going to trade responsibly,” he said.
The chilling warning comes as SAA yesterday moved to assure the markets that it would be reinstating selected local flights from Johannesburg to Cape Town and Durban today after all domestic routes were cancelled for a week due to the strike.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pravin Gordhan to meet striking unions at SAA | IOL Business ReportThe public enterprise's minister will meet unions in an effort to resolve a strike over wages at the embattled South African Airways that has entered its fifth day. busrep
Source: IOL - 🏆 46. / 51 Read more »
Pravin Gordhan says there’s no money for SAA wage demand | IOL Business ReportPublic Enterprises Minister Pravin Gordhan has washed his hands of strike-ridden SAA, telling the national carrier and unions that the government could not afford the unions’ wage demand, as it had no additional funding. busrep
Source: IOL - 🏆 46. / 51 Read more »
Reserve Bank likely to keep interest rates steady for consumers' benefit | IOL Business ReportLow inflation is set to benefit consumers this festive season as the South African Reserve Bank looks set to leave interest rates unchanged at its final meeting for the year. busrep
Source: IOL - 🏆 46. / 51 Read more »
AG says new accounting measure caught R2.81bn in irregular expenditure | IOL Business ReportR2.2bn was incurred by Prasa, confirming the reported losses the agency suffered as a result of irregularities in its purchase of new locomotives.
Source: IOL - 🏆 46. / 51 Read more »
SAA insists it cannot meet 8% wage increase demand | IOL NewsSouth African Airways (SAA) has reiterated that it does not have the financial capacity to meet workers' 8% salary increase demand.
Source: IOL - 🏆 46. / 51 Read more »
Strike-hit SAA says only a deal with unions will end crisis | IOL NewsThe airline has cancelled hundreds of flights since the strike began on Friday, with the stoppage initially costing R50 million per day.
Source: IOL - 🏆 46. / 51 Read more »