SAA - A role model

Though South African Airways ( SAA) is facing financial issues similar to our national carrier, the airline is still performing well for operating cost and revenues earned. The airline has recently borrowed R1.5 billion from two banks as an interim measure until the government adopted the airline’s turnaround plan.

The R1.5- billion is working capital to keep operations running while SAA grapples with high fuel prices and its loss- making, long- haul business in a highly competitive market.

SAA used a R5- billion state guarantee extended to it last year to secure the loan. However, the airline still occupies the biggest market share in South African aviation market wherein in India, Air India takes third position