SAA secures R3.5 billion loan to ensure future operations

SAA secures the R3.5 billion loan it needed to keep operating until March 2019.

In November last year, a turnaround plan for South African Airways was presented to the parliamentary committee. 

Interim chief financial officer, Deon Fredericks (pictured), showed that additional commitments from the government would be able to fill the R3.5 billion liquidity hole until March this year, which lenders had refused to lend the company. 

Read more: SAA needs R7.5 billion to fund further operations 

Local lenders have however stepped in to save the day and have provided SAA with the R3.5 billion loan they need to keep operating until the end of the financial year in March. 

The airline will require an additional R4 billion after March. 

According to Tlali Tlali, SAA spokesperson, these amounts are part of the R21.7 billion that SAA needs over a period of three years while its turnaround strategy is being implemented.