Final Call For SAA Rescue As Budget Looms

A rescue plan for South Africa's flag carrier has yet to get off the ground since the government has not provided promised funding, with the upcoming budget looming as a crucial test for its future

Johannesburg, (UrduPoint / Pakistan Point News - 15th Oct, 2020 ) :A rescue plan for South Africa's flag carrier has yet to get off the ground since the government has not provided promised funding, with the upcoming budget looming as a crucial test for its future.

State-owned South African Airways (SAA) had limped along for a decade thanks to regular government bailouts but last December Pretoria decided to let it sink into adminstration in the hopes of a profound restructuring to stanch the flow of red ink and wipe away debts.

Administrators axed most domestic and some international routes in February to save cash -- even before coronavirus grounded airlines globally -- as they drafted a massive restructuring plan to create a leaner, competitive airline.

Creditors in July gave the green light even though they will be paid only 7.5 cents for each rand they are owed.