South Africa’s National Treasury said on Friday there was “no further action” planned to bailout struggling national airline SAA except to settle guaranteed debt as attempts to revive the airline hang on a knife edge.
The South African government wants creditors to back a restructuring plan for South African Airways (SAA) but did not allocate new bailouts for the loss-making state airline in an emergency budget last week.
Also read: SAA administrators aim to publish revised plan on July 7
In its strongest statement yet that it doesn’t plan on giving SAA more bailouts, the National Treasury told lawmakers they would not provide any new money to the airline as they are “insolvent” and turnaround plans have not been finalised yet.
Source: Reuters