• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
See More

SAA secures guarantees

Feb 14 2012 12:13 James-Brent Styan

Related Articles

SAA adds flights despite tight economy

SAA poised to fly directly to Beijing

Mango, union in talks to avert strike

Airlines plan Sadc routes

Qantas strike may impact SAA

SAA flight to Beijing takes off


Cape Town. – South African Airways (SAA) has managed to secure a guarantee from a private bank for R437m to cover its air service licence guarantees.

SAA chief financial officer Wolf Meyer said the National Treasury earlier refused the airline permission to use an existing government guarantee of R1.6bn to cover its air service licence responsibilities. This was the previous arrangement.

The liability deriving from SAA’s air service licences pertains to tickets that have been presold by the airline.

In 2011 SAA received an unqualified audit report; however, there was an emphasis of matter placed on the air service licence guarantees.

“If the airline goes belly-up for instance, there has to be a guarantee that the airline can refund the tickets”, Meyer said.

The airline appeared before the parliamentary committee on public enterprises on Tuesday morning.

Meyer said SAA has managed to secure the necessary guarantees through a financial institution.

“This pertains to both the R101m guarantee for domestic flights as well as the R336m needed to cover international air service licence guarantees.”

Meyer also said SAA has managed to settle most of its competition-related legal challenges.

“There’s only one outstanding matter, relating to Comair, that remains. All other antitrust matters have been settled.”



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
Add your comment
Comment 0 characters remaining

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.


Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

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