South Africa gives national airline loan guarantee
South Africa's government has extended a loan guarantee worth $564 million to the cash-strapped national airline, the country's treasury said Thursday as the carrier battles financial woes threatening its business.
The 6.5 billion rand guarantee comes after the state-owned South African Airways (SAA) was in December placed under the control of the Treasury.
The government has given the loss-making carrier guarantees of up to 114 billion rand, the Treasury said a statement.
One of the conditions for the latest funds was that the airline "identify within three months areas where it can cut operating costs and how those cuts will be achieved".
SAA has been unable to release its financial statements for 2013/2014, pointing to challenges faced by the airline.
In 2013, senior staff including the chairman and chief executive walked out of their jobs after a series of poor performances.
© 2015 AFP