SAA business rescue practitioners require U$580M

SAA business rescue practitioners require U$580M

Aligning South African Airways requires US$580 million to be saved according to the Business Rescue Practitioners. The government owned airline is one of two state owned airlines in South Africa currently under business rescue.

Appointed in December 2019 the BRP have struggled to come up with a viable plan to save the airline. Last month the BRP were asked to present a viable plan to turn the fortunes of the struggling airline.

The tax-payer is being asked for US$580m that will be directed towards settling leasing fees, creditors, reimbursement of air tickets and severance packages. According to the report about US$100m will go to the lessors, US$170m towards tickets while creditors will be allocated about US$33m, severance package stand at US$130m and US$160m for direct working capital.

Over the past few weeks SAA has returned 17 aircraft to the lessors as reported by enca.com. Three Airbus A340-300s (ZS-SXA, ZS-SXB and ZS-SXC) were returned to Tarbes (LDE) France after serving the airline for almost 20 years.

#SAA #BAILOUT #JUSTAFRICANAVIATION

Copyright 2020 Just African Aviation Pty Ltd, Permission to use quotations from this article is granted subject to appropriate credit being given to www.justafricanaviation.com as the source.

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