SAA says flights operating normally after bailout talks stall
JOHANNESBURG - South African Airways (SAA) said on Monday that its flights to all destinations were operating normally, after talks over the weekend on a bailout plan for the state carrier ended with no solution.
Government officials are scrambling to work out how they can provide 2 billion rand ($138 million) of funds they promised when SAA entered a form of bankruptcy protection last month.
The airline’s business rescue practitioners held talks with the government at the weekend to try to find a solution on the funding gap. But as of Sunday evening, no solution had been found, a person briefed on the talks told Reuters.
Last week, a senior trade union official said SAA could have to suspend some flights and delay salary payments
ABUJA - The six member countries of the West African Monetary Zone (WAMZ) comprising Nigeria, Ghana, Gambia, Guinea, Liberia and Sierra Leone, have rejected the adoption of 'Eco' as the name of the proposed single currency for West Africa.
Rising from an extra-ordinary meeting of the ministers of finance, and the governors of the Central Banks of the West African Monetary Zone on the ECOWAS single currency programme, held in Abuja, if the government didn’t come up with a plan to provide the 2 billion rand soon.
“Flights to all its destinations continue as normal,” SAA said in a statement.
“Where there may be flight schedule amendments, such operational changes will be managed and communicated in accordance with the industry norms.”
On Sunday, the public enterprises ministry said it was talking with the National Treasury to raise funds for SAA.
The airline is one of several South African state entities, including power company
Eskom, mired in financial crisis after nearly a decade of mismanagement. State companies’ financial problems are seen as the single greatest threat to South Africa’s economy and have been largely responsible for pushing the country’s credit rating down to the brink of junk status.