Treasury approves additional R6.4 bn SAA guarantee The (SA) Minister of Finance has approved an additional guarantee of R6.488 bn for SAA, taking the total guarantees granted to the airline to R14.4 billion. The additional guarantee will enable SAA to finalise its annual financial statements for 2013/14, making it possible for the airline to hold its annual general meeting (AGM) on Friday next week (January 30). Conditions of the guarantee include: • SAA to provide Treasury within one month a comprehensive implementation plan for the 90-day action plan interventions, including timelines for the targeted savings and which managers are responsible for delivering those savings; • Review and stress testing jointly by government and SAA of the financial model and refined long-term turnaround strategy (LTTS); • SAA to develop proposals within three months on the network structure, fleet strategy and structure of the airline for government’s consideration; • SAA to identify within three months areas where it can cut operating costs and how those cuts will be achieved; • Airline to strengthen governance, internal controls and working capital management, develop an implementation plan in this regard and submit progress reports monthly; and • SAA to submit weekly report to Treasury. “The Minister, the Board, the acting CEO, and the CFO have agreed that to stabilise the company’s financial position, elements of the long term strategy must be implemented with speed even as the board continues to refine and update the strategy. In addition, short-term and medium-term milestones have been identified and will form part of the shareholder compact that the Minister of Finance will sign with the board,” the Ministry of Finance said in a statement. Tourism Update
Posted on: Fri, 23 Jan 2015 11:41:36 +0000
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