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SAA Gets R10.5-billion Government bailout

The government on Wednesday announced the release of R10.5-billion needed to fund a plan to rescue struggling South African Airways.

The cash-strapped airline was placed under a state-approved administration in December following years of mismanagement and rising debt.

In a mini-budget statement on Wednesday, Finance Minister Tito Mboweni said R10.5-billion “is allocated to SAA to implement its business rescue plan”. 

“This allocation is funded through reductions to the baselines of national departments, public entities and conditional grants” said Mboweni.

The latest allocation expected to save the limping airline, is in addition to R16.4-billion doled out in February this year to settle guaranteed debt and interest.

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