• The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

  • Losing the plot

    Parastatal leaders have lost focus of what they're supposed to do, says Nonkululeko Gobodo.

All data is delayed
See More

SAA secures R550m bailout

Jan 06 2013 11:52
 Johannesburg - South African Airways received an emergency loan to cover fuel costs, preventing the grounding of its local and international flights, according to a report on Sunday.

Finance minister Pravin Gordhan and public enterprises Minister Malusi Gigaba last week signed off a guarantee that allowed the national carrier to secure a R550m bank "facility" for fuel and other short term commitments, the Sunday Times reported.

The loan has to be repaid over the next three months.

The grounding of the airline would have left scores of local and overseas passengers stranded after the festive season holidays.

Gigaba's spokesperson Mayihlome Tshwete told the newspaper there was nothing unique about the loan and that airlines all over the world had experienced financial challenges.

"This was in fact foreseen by SAA when it previously requested a R5bn guarantee. As management, we would not expose the airline to the possibility of being grounded at any time."

SAA's fuel contracts were under review, chief executive officer Vuyisile Kona told the Sunday Times.

The airline, as the country's biggest buyer of fuel, was not getting the best deal, he said.

"I am not happy with the pricing. In fact, I am getting the best deals overseas."

Emergency measures were being put in place to curb crippling losses across some of the airline's subsidiaries.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

saa  |  flights



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
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

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

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote