SAA receives R3.5bn in funding to keep it up until June



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The SA Airways state-owned subsidiary company (SAA) has ratified the R3.5bn, it must continue to fund work capital requirements up to June, saying CFO Dean Fredericks said Monday .

Arrangements have also started with banks to expand the pay terms R9.2bn due bank debt at the end of March, he said.

The ferry company requested cash on R21.7bn from the government last year to balance its recovery and deliver capital operating to help with the # 39; implement a three-year plan, agreed by the stakeholders. From now on, R5bn was issued by the government in the mid-term budget last year.

A further R4bn for operating capital in the 2019/2020 financial year, Fredericks said.

All current R12.7bn SAA debts are held by the government. Amazingly, R4bn to R5bn should have a debt of a company of the SAA value, which shows the need to recycle the SAA balance sheet to improve its competitiveness.

"The key is to be sure," said Fredericks. Of course, banks are still unhappy to provide long-term debt, which would be cheaper than the current short-term finances financed by SAA.

Vuyani President Jarana said the air has made a great deal of progress in implementing its turnover strategy, see that the air is accessible to & # 39; bankruptcy before the financial year 2021. In the six months to September 2018, he met the targets on his revenue budget, operating costs and described the loss of net much less than expected.

Some of its efforts include the removal of one Johannesburg-Heathrow plane, which allowed the major profit route to be earned for its sake. first time in a decade, Jarana said.

A supply chain policy has been saving cost against R299m, while improvements have also been made at the SAA Technology and on domestic, regional, and international international routes.

However, there are still several challenges. Providers have cut down payment terms for SAA, which emphasize the cost of cash flow, although the financial situation is also uncertain as well as the ability to pay. company to produce hedgerows on foreign exchange and fuel purchase transactions, main cost driver.

Jarana Monday also indicated that the air would be reorganized into three business units as part of a reformed plan.

The home, regional and international business units have their own administration, rather than making decisions in the middle, in order to do so; try to make the air easier and to increase accountability.

Le Reuters

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