The Department of Public Enterprises is considering the possibility of introducing a strategic equity partner for South African Airways (SAA), says the Parliamentary Communication Services.
Officials from the department told the Standing and Select Committees on Appropriations that despite previous bail-outs for SAA, including the R5 billion under consideration, the airline will still be insolvent.
The department needs to find other ways of improving SAA’s balance sheet.
SAA said it estimates that the airline will be profitable by 2021 and will incur financial loses of R5.2 billion and R1.9 billion for the 2018/19 and 2019/20 financial years, respectively.
The joint meeting of the Committees also questioned the allocation of R1.249 billion to the South African Express airline – whether it’s a loan or buy-in of shares and how it will be paid.
Treasury officials are due to address these questions and provide a brief on Friday.