SAA explains the extra funding needed from the Development Bank of SA
JOHANNESBURG - Embattled South African Airways (SAA) that was bailed out yet again, this time by the Development Bank of South Africa (DBSA), has explained what the extra funding of R3.5bn will be used for.
SAA said in a statement that the purpose of the funding is to provide a bridge to facilitate the development and publication of the Business Rescue Plan by the Business Rescue Practitioners by the end of February for presentation to creditors shortly thereafter.
SAA said in the statement, "The conservation of cash through various cost reduction measures is critical to running an efficient airline and to create a platform on which a future for a restructured entity can be built. The BRPs have been and will continue to review all third party contracts with the entity, with the intention to cancel any onerous contracts or renegotiate others into commercially accepted terms. In addition, flight demand has been scrutinised to ensure SAA is running efficient flights. To this end, SAA will therefore cancel and consolidate selected scheduled flights where there is low demand based on current forward bookings for the month of February."
"Recognising the importance of advance planning for our customers, it is thus important that we provide advance notice as possible to affected customers."
Philip Saunders, Chief Commercial Officer, said, “We are committed to accommodating all affected customers on alternative flights, operated by the airline and its Star Alliance partners. Any inconvenience or delays are intended to be minimal.”
Travel agents, alliance partners and relevant stakeholders have been notified of these operational changes.
SAA said that it appreciates their on-going support in re-accommodating their passengers.
BUSINESS REPORT ONLINE