JOHANNESBURG – SA Airways chairperson of the board implementation committee Martin Kingston on Wednesday warned that the embattled airline’s liquidity was on the brink of collapse.
Kingston said lenders would not advance the airline any further credit without the security and support of a sovereign guarantee. Kingston said SAA was in talks with the National Treasury to use the surplus guarantees it had in its balance sheet, but the Treasury wants to be satisfied that the money was for appropriate use. “Unless we are able to secure guarantees from the National Treasury – and we are in discussions with them – then the board will have to recommend to the government that actually it be placed into liquidation, because we have no confidence that we are going to trade responsibly,” he said.
The chilling warning comes as SAA yesterday moved to assure the markets that it would be reinstating selected local flights from Johannesburg to Cape Town and Durban today after all domestic routes were cancelled for a week due to the strike.
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