SA Express issues now ‘resolved’
THE 2015-16 financial statements of state-owned airline SA Express have been signed off by the board and will be tabled in parliament as soon as a report from the auditorgeneral has been received for inclusion.
This is according to the airline’s spokeswoman Mbali Zibi.
Earlier this month, Public Enterprises Minister Lynne Brown wrote to the National Assembly Speaker Baleka Mbete explaining the financial statements could not be tabled due to ongoing disquiet about its going-concern status.
The airline, which was supposed to have tabled its financial statements by end-September, is supported by a state guarantee of R1.1-billion.
“The SA Express executives are engaging with the auditor-general to satisfy the solvency and liquidity test required to demonstrate the airline is [a] going concern,” Brown said.
“The process is still in progress, and the 2016 annual report and statements will be tabled as soon as the going-concern status of the airline has been resolved and the audit has been concluded.”
Zibi said these issues had been resolved and once the auditor-general’s report was received for inclusion with the financial statements, they would be tabled in parliament.
SA Express made a net loss of R132-million in 2014-15 on revenue of R2.6billion and operating expenses of R2.6-billion.
As at end-March last year, the airline had accumulated losses of R733million and its total liabilities exceeded its assets by R126-million.
Intense competition between low-cost carriers and an ageing fleet have had a negative effect on the airline’s profitability. — BDLive