Takatso Aviation welcomes R1 billion SAA allocation
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GUEST: Thulasizwe Simelane – Takatso Aviation Spokesperson
Takatso Aviation welcomes the provision made in the Finance Minister’s budget today, for the appropriation of R1 billion to South African Airways (SAA), in partial fulfilment of government’s commitment to settle the airline’s historical debt, initially quantified at around R13.5 billion. The bulk of the original amount has already been settled. This appropriation stems from the processes that led to SAA’s exit from the business rescue process (BRP) in April 2021. It is a commitment made by government as shareholder to the BR creditors prior to Takatso Aviation being chosen in June of that year, as the preferred SAA Strategic Equity Partner. The budgeted R1 billion will settle some, but not all of the outstanding amount. It therefore falls short of what it would have taken for government to completely clear this obligation, which is one of the conditions for the finalisation of the SAA Transaction with the SEP. The partial fulfilment of this obligation is not what Takatso Aviation had expected. We will therefore have to assess the impact thereof on progress of the transaction.
Takatso Aviation welcomes the provision made in the Finance Minister’s budget today, for the appropriation of R1 billion to South African Airways (SAA), in partial fulfilment of government’s commitment to settle the airline’s historical debt, initially quantified at around R13.5 billion. The bulk of the original amount has already been settled. This appropriation stems from the processes that led to SAA’s exit from the business rescue process (BRP) in April 2021. It is a commitment made by government as shareholder to the BR creditors prior to Takatso Aviation being chosen in June of that year, as the preferred SAA Strategic Equity Partner. The budgeted R1 billion will settle some, but not all of the outstanding amount. It therefore falls short of what it would have taken for government to completely clear this obligation, which is one of the conditions for the finalisation of the SAA Transaction with the SEP. The partial fulfilment of this obligation is not what Takatso Aviation had expected. We will therefore have to assess the impact thereof on progress of the transaction.
