Banks Won’t Lend South African Airways Any More Money
Paul Burkhardt, Bloomberg
- Sep 24, 2018 2:00 pm
South African Airways has lost money for six consecutive years, and it makes sense that banks have run out of patience. There’s also little chance that Abu Dhabi-based Emirates might take an equity share in South African Airways.
Management is thinking about selling the airline’s catering unit, Air Chefs, and outsourcing or selling SAA Cargo, the Johannesburg-based paper reported, citing an official it did not identify and an internal report.
The company is set to record a 6 billion rand ($419 million) loss at the end of the current financial year, City Press said, citing the internal report. A spokesman for SAA didn’t answer a call seeking comment outside of usual office hours.
Photo Credit: A man cycles past Airbus Group NV A340, left, and A330-200 aircraft operated by South African Airways at O.R. Tambo International airport in Johannesburg, South Africa, on Tuesday, Feb. 24, 2015. South African Airways is close to a 1.25 billion-rand ($107 million) savings target after renegotiating airline leases and supply contracts, canceling two long-haul destinations and reviewing the route of Washington D.C. flights. Waldo Swiegers / Bloomberg