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SAA

SAA Assures Staff January Salaries Will Be Paid

South African Airways (SAA) says it has saved enough cash to pay this month’s salaries amid concerns from unions that the airline needs more money to stay afloat.

The embattled state-owned company is fighting for its survival after it entered a form of bankruptcy protection last month and cancelled some flights this week because of cash shortages.

Business rescue practitioners have been appointed to try to turn around the struggling airline.

SAA says management has taken various actions to ensure that cash is preserved and, as a result, sufficient funds are available to pay the salaries.

The company was promised R4 billion of funding from lenders and the government to sustain rescue efforts but only received R2 billion from lenders.

Government officials are holding urgent meetings, trying to find a way to raise the promised funding quickly, without exacerbating the country’s budget deficit.

SAA has also suspended some local and international flights to save money.

EWN