Deputy Finance Minister Mondli Gungubele says a turn around strategy aimed at mending the South African Airways' (SAA) financial woes will possibly help the national carrier break even by 2021.
Gungubele is co-chair of the oversight body that is monitoring efforts to turn the national carrier around.
Addressing Parliament’s Standing Committee on Appropriations on Wednesday, Gungubele said the airline will need at least R20 billion to bring he national carrier back to a point where it could leverage off its balance sheet.
The airline has outstanding debt of more than R9.2 billion and is making less money than it is spending.
Gungubele says SAA now has a clear turnaround strategy aimed at fixing its finances, corporate governance and operating model.
We have got a series of things that are being done from the diagnosis that SAA has been badly managed and had lack of skills.— Mondli Gungubele, Deputy Finance Minister
As we speak now the biggest challenge that we are facing in the first phase, as to ensure that we actually put in place an effective operational model and we also ensure that in terms of cash management we actually put all the skills that help us manage cash.— Mondli Gungubele, Deputy Finance Minister
One of the most critical things in the first phase is to put in place the imperatives of corporate governance.— Mondli Gungubele, Deputy Finance Minister
Click on the link below to listen to the full interview....