Dubai — State-owned SAA has reached an agreement in principle with lenders to roll over $642m of debt, its CEO said on Tuesday, giving him room to execute a turnaround aimed at weaning the airline off government bailouts.
SAA, which has not made a profit since 2011, has drawn up a five-year turnaround plan that includes slashing costs and canceling unprofitable routes as it grapples with cost increases that far outstrip revenue growth.CEO Vuyani Jarana told reporters at a CAPA aviation summit in Dubai that SAA had reached an agreement in principle about extending the maturities of its R9.2bn debt burden. He did not give details of the agreement, saying talks with lenders were ongoing.
Extending debt maturities for the long term would give the executive team led by Jarana, a former executive of mobile phone firm Vodacom, room to focus on the turnaround plan that has penciled in a return to profitability in 2021.
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