Too much weight for SAA
30 November 2015 - 02:13
SAA is too deep in debt. In February, Nico Bezuidenhout revealed the carrier had a negative equity of 13%. In other words, the market value of its assets covered only 87% of its debt.Furthermore, as SAA incurred a loss of R2.5-billion in the last financial year, it has had to borrow at a much higher cost than previously.The state has so far given SAA guarantees totalling R14.5-billion altogether.Even that colossal amount is not enough.Finance Minister Nhlanhla Nene has no money left in the kitty. The closer South Africa draws to the fiscal cliff, the more Nene has to concentrate his mind on how to keep the country afloat...
There’s never been a more important time to support independent media.
From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.
For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.
Already subscribed? Sign in below.
Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.