South African Airways gets $272 mln lifeline as it enters business rescue
South African Airways will get a 272 million dollar lifeline from the government and banks as it enters a business rescue process on Thursday (December 5).
That's according to a deputy minister, who declined to be identified due to the sensitivity of the matter, but told Reuters he had received an official letter calling for a change of approach on SAA.
The embattled airline has not made a profit since 2011, depending on government bailouts to stay solvent.
It was hit by an employee strike in November, forcing it to cancel hundreds of flights, and pushing it to the brink of collapse.
In a business rescue, a specialist practitioner takes control of a company with the aim of rehabilitating it to improve its chance of survival.
Or, securing a better return for creditors than they would receive from liquidation.
SAA said the process provided the best prospects for "selected activities within the group to continue operating successfully."
