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SAA cash crunch deepens

As suppliers have still not been paid.

South African Airways (SAA) appears to have exhausted its available cash reserves following news that suppliers have still not been paid for work done in July.

The airline has thirty-day terms with a number of suppliers that provide essential services to it. They had not been paid at the end of last week, a week after the deadline had passed.

SAA spokesperson Tlali Tlali told Moneyweb at the time: “We have a duty to ensure that we maintain our relationship with all our suppliers. We are in liaison with them on a continuous basis and have payment terms and/or arrangements in place with them.”

SAA indicated that payments to suppliers would be made during the course of this week, but as of the close of business on Tuesday, nothing had been received. The delay is now the longest some of them have had to wait for payment.

The news follows hot on the heels of a report Moneyweb broke in June that the airline had to use a VAT refund to pay salaries. Last week Moneyweb reported that the airline was cutting its fleet of aircraft imposed on it by owners because of the company’s dire financial position.

Finance minister Malusi Gigaba reiterated the urgency of the situation at the national carrier a few weeks ago when, after meeting with the CEO Initiative, he made it abundantly clear government was running out of time to put a solution in place.

National Treasury aims to have the plan to recapitalise the airline to the tune of R13 billion approved by cabinet by the end of September.

Questions to SAA had not been responded to at the time of publication.

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Maybe SARS commissioner can give a loan against future VAT refunds..

Duduzani is in the cash, maybe he can help or even better buy it……

yes he, Guptas other Zumas can save a little face by donating some dough

How about Jimmy Manyi?
He seems to have an appetite for buying dead businesses.

Sorry but SARS Emeritus King Tommy Booi is busy in Dubai carrying Anglo’s VAT cash refunds for Prezzies Atul and Ajay due to lack of banking facilities. The were hoping BoB (Bank of Baroda) would have capitulated by now!. My guess is SAA should raid the Gupta compound and bring some of our cash back to pay their salaries. I am sure the many employees would be up for fight if their salaries are not paid.

do not fear – the PIC is near with YOUR pension money!

Haha, don’t work for the state, thank goodness!

While SAA bites the dust with cutbacks, Malasian airlines has announced a potential purchase from Boeing of up to 50 new aircraft. This was announced during a meeting yesterday between the Malasian Prime minister and Donald Trump.

And how do they make it work??? No hangers on doing nothing a la SAA and no one stealing……

But wasn’t Duduzani expected to leave. Don’t tell me she is still around.

Believe it or not she had her contract extended in order to ensure a “smooth transition” to a new ChairMAN!!!
She will leave at the end of the year. B!TCH

just read on IOL she stays on till end November…….so no end in sight

“National Treasury has agreed to give South African Airways a special appropriation of R10 billion by the end of September, director general Dondo Mogajane told MPs on Wednesday”
……..GAAN DIT NOOIT EINDE KRY!

There is a direct correlation between the ANC being in power and the demise of SAA.

Please sell/close SAA. It serves no purpose except to bankrupt South Africa!

Close it, it is long overdue.

SAA sill NEVER be profitable.

While Bathabile insists she is entitled to 30 free tickets for family and friends…

And don’t forget that she was one of the thieves involved in the travel gate fraud saga. She pleaded guilty and repaid R250,000 to Parliament and now she is a cabinet minister! Wow!.

This disaster has got to ridiculous levels.You have a management “team” that totally ineffective and a Minister of Finance who is totally out of his depth, punting to throw more good money after bad, hoping against hope to rescue a hopelessly bankrupt organization, which as long as it has this mob running it will continue to bleed to death. Now they want to use PIC funding to prop up this mess. Good luck to those who anticipate receiving pensions
A good solution would be to give it away to the operators of BA and let them make a success of it and at least there would be tax income generated for the benefit of the fiscus and the country.

I know this seems to be a big joke – BUT the reality is that this is very serious – perhaps a portent of what’s in line for the public of sa. the anc will NEVER let saa go down the gurgler in the same way that they will NEVER allow the IMF to come in and run treasury. certain commentators like RW Johnson seem quite convinced that saa will go down and IMF will come in. we shall see!

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