D-Day for R603m SAA payment to Airbus | Fin24
 
In partnership with
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.

Loading...

D-Day for R603m SAA payment to Airbus

Dec 20 2015 17:18
Susan Comrie

SAA planes sit on the tarmac at the OR Tambo International Airport in Joburg. In an SAA memo this month, the company was described as being ‘financially distressed, currently trading under insolvent circumstances and consequently trading recklessly’

Related Articles

Airbus said to be happy with Treasury-backed SAA deal

The memo SAA wanted to keep secret

Pravin Gordhan: 'Miscalculation needs new scenario. I’m the new scenario.'

How world sees us: Nene’s nuclear, SAA-related axing 'profoundly negative'

Nene's shock removal pure political play - economists

SAA pilots won't be intimidated by sabotage claims

 

Johannesburg - The SAA Airbus deal is down to the wire, with R603m due on Monday unless Treasury and SAA can reach an agreement on the controversial contract.

The Airbus deal is the first major test for Finance Minister Pravin Gordhan since he was parachuted back into Treasury last week.

But with the clock ticking, there is still no sign of a decision.

VIEW: TIMELINE: All you need to know about the controversial SAA-Airbus deal

“The minister is in discussion with SAA chairperson [Dudu Myeni] and the director-general has met SAA officials,” said SAA spokesperson Tlali Tlali on Friday.

“A full statement will be issued on or around December 21 once all the discussions on all the immediate matters have been concluded.”

This was echoed by Treasury spokesperson Phumza Macanda, while Airbus’ Southern Africa spokesperson Linden Birns said: “Airbus does not discuss unfinalised business.”

The Airbus deal, which was struck in 2002 and renegotiated in 2009, requires SAA to make pre-delivery payments of $40m (R603m) on new Airbus aircraft by Monday.

SAA would have been relieved of this obligation under the “swap transaction” negotiated by Treasury during former minister Nhlanhla Nene’s tenure.

But after the SAA board failed to ratify the deal, and Myeni proposed a new structure, SAA was once again liable for the $40m.

Nene’s axing is widely believed to be connected to the Airbus deal – a claim the presidency denies – after he rejected Myeni’s proposal and issued a stern instruction to SAA to go ahead with the “swap transaction”.

On Monday, Gordhan promised to “stabilise SAA”, and said he would call Myeni within 24 hours as one of his first orders of business.

Although Gordhan is expected to stick to the same deal, SAA’s board must still sign the deal.

“The ball is in the court of the airline,” a source close to the negotiations told City Press. “Everyone is waiting to see what happens over the weekend … The window of opportunity is about to close.”

airbus  |  saa  |  airbus swap deal  |  airlines
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...