Selling SAA not an option, says Ramaphosa
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.