South African Airways needs another R4 billion to stay afloat. According to Africa Check, from 1999 until 2017 the South African government has allocated R29.1 billion in bailouts to the struggling national airline. Government allocated another R5 billion in November 2018 and the carrier also secured R3.5 billion through private lenders at the beginning of 2019.
After the resignation of CEO Vuyani Jarana earlier this month, interim CEO, Zukisa Ramasia maintains that SAA is still on track to break even in 2021. Jarana, in his resignation letter cites funding uncertainty and bureaucracy among his reasons for leaving. He also said the turnaround strategy was being systemically undermined and that he was no longer able to assure the board and the public that the strategy is achievable. This creates some serious doubt whether SAA, an entity who has not turned a profit since 2011, will be able to achieve its 2021 goal.
Where to from here for SAA?
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