Commodities

South African Airways in line for 4 bln rand boost to continue operating-minister

Credit: REUTERS/Siphiwe Sibeko

South Africa's failing national airline SAA is expected to get an extra 2 billion rand ($136 million) boost from government and another 2 billion from existing lenders as it enters business rescue proceedings from Dec. 5 in a bid to prevent a collapse, a minister said on Thursday.

CAPE TOWN, Dec 5 (Reuters) - South Africa's failing national airline SAA is expected to get an extra 2 billion rand ($136 million) boost from government and another 2 billion from existing lenders as it enters business rescue proceedings from Dec. 5 in a bid to prevent a collapse, a minister said on Thursday.

SAA, which has not made a profit since 2011 and is dependent on government bailouts to remain solvent, suffered a crippling strike last month that forced it to cancel hundreds of flights and pushed it to the brink of collapse.

($1 = 14.7075 rand)

(Reporting by Wendell Roelf; Editing by Kim Coghill)

((wendell.roelf@thomsonreuters.com; +27 21 461 3523;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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