Loading...
See More

SAA bleeding cash

Nov 20 2012 11:32 James-Brent Styan

Related Articles

Loubser: Govt must support SAA

SAA task team set up

SAA developments worry cabinet

Gigaba: We can turn SAA around

SAA 'not falling apart'

Spotlight falls on SAA efficiency

 
Cape Town – South African Airways (SAA) is bleeding cash. The airline has reported a net cash outflow of R396m in the year to March 31 2012.

The airline has finally released its full-year results, following a period of turmoil at board and executive level.

The final loss for the year after tax was R1.06bn, on a turnover of R22.4bn.

In the director’s report, signed off by acting chairperson Duduzile Myeni and former CEO Siza Mzimela, it is noted that
the airline remains a massively undercapitalised business.

“The directors have given consideration to the short- to medium-term cash flow requirements of the airline. In light of the potential adverse cash flow impact arising from the state of the global airline industry, SAA approached the shareholder for a guarantee to be made available to the amount of R5bn.

"This guarantee has been granted and will be effective from September 1 2012 to September 30 2014,” the director report reads.

The director report further notes that “ the shareholder has indicated that the capital adequacy and business model of the SAA will be assessed".

 - Fin24

Follow James-Brent Styan on Twitter by @jamesstyan.
 
saa
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
48 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...