S/African Airways needs R21.5bn for 3-yr biz plan

South African Airways requires R21.5bn (about N609bn) for the next three years as part its turnaround strategy to return the airline to profitability.

This amount is expected to cover the airline’s debt profile of R9.2bn and the working capital of 12.5bn.

The airline has in recent years been rocked with liquidity crisis with banks halting provision of credit facility to the airline.

But the Chief Executive Officer of the airline, Vuyani Jurana said the management has begun implementation of the turnaround strategies to strengthen the balance sheet of the airline and restored bankers’ confidence.

Already the South African government has provided a bailout of R5bn as part of the turnaround plan.

But the CEO while briefing newsmen in Lagos as part of his official visit to Nigeria said, “A combined figure of R21.7bn is what will take SAA moving forward”.

Jurana said the West African market especially Nigeria remains critical to its operation, stressing for about 20 years the airline commenced operations in Nigeria, it has played critical role in getting the two countries to work together.

Jurana also assured that the plan is in the offing to restore its Abuja flight which was suspended two years ago, reiterating that Nigerian route remains one of its most profitable routes.