Development Bank throws SAA a lifeline

SAA has secured R3.5 billion in loan funding from the Development Bank of Southern Africa .

The airline had initially sought R4 billion to fund the rescue while it was being restructured, but it is believed that amount has since grown to R5.5 billion.

The first R2 billion was provided through a loan from a consortium of commercial banks.

The billions are needed to run the airline during the business rescue process.

I think it was surprising, the bank normally funds infrastructure - developmental infrastructure such as roads and water infrastructure. Given those needs at the moment it was a surprise - but clearly I think pressure was brought to bear.

Carol Paton, journalist - Business Day

There is a case to be made that it would be detrimental to the economy if SAA - the entire holding company - has to fold. We do need an aviation industry. We don't want SAA technical that provides tech support to airlines all over the world to just vanish. I think there is potential that some of these businesses can be run well.

Carol Paton, journalist - Business Day

There's still a lot of money that taxpayers are going to have to pay towards SAA for the next few years.

Carol Paton, journalist - Business Day
Picture: @flysaa_care/Twitter

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