Sell­ing SAA not an op­tion, says Ramaphosa

Sunday Observer - - NEWS -

CAPE TOWN - Pres­i­dent Cyril Ramaphosa says sell­ing SAA is not an op­tion. He says a strate­gic eq­uity part­ner to help the air­line must rather be found.

The na­tional car­rier needs to re­pay mas­sive debt.

The pres­i­dent was an­swer­ing ques­tions in the Na­tional As­sem­bly. "The debt that we carry and we have un­der­writ­ten as gov­ern­ment is quite sig­nif­i­cant," he said.

"If we were to say let it shut down, it ba­si­cally means that this debt that SAA car­ries be­comes payable imme- di­ately."

Ramaphosa said that SAA must be seen as "our col­lec­tive chal­lenge and prob­lem".

Mean­while, Bloomberg re­ported that SAA is con­sid­er­ing sell­ing shares to the pub­lic in an at­tempt to end years of losses and re­duce the need for bailouts.

Sources have said that the na­tional car­rier will first have to im­ple­ment its turn­around strat­egy suc­cess­fully and break even.

SAA has de­clined to com­ment on the re­port.

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