(Ecofin Agency) - South African Airways (SAA), would need R5 billion ($400 million) from the government to pay its debts and cover operating costs, the company's CEO, Vuyani Jarana, announced yesterday April 24. 

According to the manager, relayed by Reuters, this fund could be part of an open credit line set up by the government. This new capital injection should allow to keep the company afloat and repay a R9.2 billion ($ 737.4 million) debt whose deadline is set to 2019.

For the record, in 2017, the company which has been struggling to return into profitability since 2011, had already benefited from a financial recapitalization of about R10 billion ($ 802 million) from the government, including a bailout to avert a R1.8 billion ($144 million) payment default due to Citigroup.

Let’s note that with this new funding requested, SAA’s hope to launch a financial recovery plan, which should allow the company to reduce its dependence on government and achieve a financial balance by 2020.

Moutiou Adjibi Nourou (intern)