Struggling South African Airways has seen another payment from the local government of USD 55.1 million. This acts as a bailout for the struggling carrier.
The additional funding will allow the airline to pay off historical liabilities that were part of its rescue plan over an almost 18-month period. This was from December 2019 through April 2021.
Ultimately, South African Airways still has significant debts that need to be paid off, even with the latest bailout from the government. It comes following the sale of 51% of SAA to the Takatso consortium, notably this sale with debt free, meaning they won’t take on all the previously accumulated historical debt for new ownership.
Per Cirium data, the airline has only nine operational aircraft, with six remaining in service. Five In addition, the aircraft in storage are Airbus A340s. The airline has significantly downscaled its operations in recent years. While the pandemic impacted operations, SAA remained an airline before the pandemic that financially was also struggling.
An ongoing negotiation will occur regarding how the remaining debt will be paid off. However, the eventual sale transaction cannot happen until all remaining debt is cleared.