SAA tells MPs it needs nearly R17bn by March

The airline has also pushed back its break-even date to 2021

SAA will require another R16.7bn from the government, either in the form of capital or loan guarantees by March 2019, the airline's executives told MPs on Tuesday.

The R16.7bn is made up of R3.5bn that is required by December, R4bn that is needed by March, and the refinancing or repayment of another R9.2bn in debt that matures in March 2019.

Together with the R5bn that was allocated in October’s medium-term budget policy statement, this makes up the R21.7bn that SAA had previously stated made up its working capital requirements.

SAA CEO Vuyani Jarana also told MPs that the airline had pushed back the expectation of its break-even point from 2020 to 2021. 

CFO Deon Fredericks said that the R3.5bn was urgently required as “negotiating for the R3.5bn loan is not possible anymore as banks require additional commitments from the shareholder”.

The government is the sole shareholder of SAA.

The break-even date had been pushed back due to higher-than-expected oil prices.

The strategy had assumed an oil price of $45 a barrel when the real price over the past year was closer to $75 a barrel.