South African Airways (SAA) has secured crucial funds to meet short-term liquidity requirements and to continue flights as normal in accordance to the business rescue plan.
While previously the flag carrier assured that operations continue as normal and then proceeded to cancel flights the following day, the $137.5 million (R2 billion) initial post commencement funding (PCF) will now allow passengers, travel agencies and airline partners to book tickets on South African Airways “with confidence,” notes a press release issued by the company.
SAA also indicates that it is holding discussions with financial institutions, including the state-owned Development Bank of Southern Africa that has agreed to provide additional funds amounting to $240 million (R3.5 billion) with an immediate draw-down of $137.5 million (R2 billion).
As of December 5, 2019, the Johannesburg, South Africa-based airline has been operating under bankruptcy protection procedures to “develop a sustainable, competitive and efficient airline” ‒ and to find a strategic partner that would be willing to take a stake at the company, rescuing “jobs wherever possible.” The South African airline has been on a cost-cutting and a cash-raising quest since the start of the business rescue plan, including two tenders for spare Boeing 747 parts and nine Airbus A340 aircraft that were part of South African Airways’ fleet.
One Airbus A340, registered ZS-SNH, landed in San Bernardino International Airport, California, United States (SBD) on January 29, 2019. San Bernardino hosts several companies that specialize in aircraft disassembly or storage activities.