South African Airways (SAA) chief executive Vuyani Jarana says the airline has outstanding debt of more than R9.2 billion and is making less money than it is spending.
This emerged when SAA appeared before Parliament’s Standing Committee on Public Accounts on Tuesday, to answer questions about its annual report and financial statements.
According to Eyewitness News' parliamentary reporter Gaye Davis, Jarana says the airline is in talks with banks and National Treasury to secure an open credit line because it does not have capital.
We have known that SAA is deep in the red for some time because this airline has been in trouble for a long time.— Gaye Davis, EWN parliamentary reporter
We know that they are making less money than they are spending, they are burning cash and they need more capital.— Gaye Davis, EWN parliamentary reporter
We have just heard this afternoon from Vuyani Jarana that they are in talks with banks and National Treasury to secure an open credit line because they do not have any credit.— Gaye Davis, EWN parliamentary reporter
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