Johannesburg - SAA was meeting all its financial obligations as and when they became due, a source familiar with the airline’s financial position told Business Report yesterday.
The source said at no point had SAA been unable to pay its debts when due.
“The airline is meeting all its financial obligations,” the source said, adding that there was no issue of SAA becoming commercially insolvent.
The source also said SAA had no predelivery payments due to Airbus as the two were still in talks.
“The airline has not breached the purchase agreement. The predelivery invoices that have been sent to SAA from Airbus have been sent prematurely.”
Airbus has granted SAA until December 16 to renegotiate the leasing of five A330s, which the airline says will help boost efficiencies and cut costs as it works to stabilise its operations.
The source said SAA’s going concern status was not in question as the airline had secured R14.5 billion in state guarantees. “There is no basis to talk about commercial insolvency,” the source added.
“SAA is not (backtracking) from the swop”, referring to the planned procurement of aircraft from Airbus.
Yesterday, the National Treasury said SAA had submitted an application last week to Finance Minister Nhanhla Nene seeking authorisation to restructure the Airbus deal.
“The National Treasury’s fiscal liabilities committee is currently studying the application and will make recommendations to the minister in due course,” the Treasury said in a statement.
“The minister will be looking for a deal that benefits the airline financially, or one that does not leave SAA in a worse off position,” it added.
A decision has yet to be made on the application.
Nene has also requested a briefing from the board on the recent developments involving the departure and suspension of some of the executives at SAA. The Treasury also said the process of appointing a full board was under way.
Last week SAA demoted human resources head Thulu Mpshe, who was the acting chief executive, and replaced her with the head of its maintenance unit, Musa Zwane.
At the same time, former chief financial officer Wolf Meyer resigned and chief commercial officer Sylvain Bosc was put on suspension pending an investigation into the Airbus deal.
Business Report also revealed that SAA had submitted a shortlist of candidates for the chief executive’s position to Nene.
BUSINESS REPORT