South African Airways (SAA) needs short-term funding from government by the end of next week for the state carrier’s business rescue process to continue, its administrators said.
“It is prudent to advise affected persons of the company’s dire financial position,” they said in a statement.
“The existing funds available for operational expenditure are near depletion.”
The administrators took control of SAA in December after almost a decade of financial losses and published their restructuring plan for the airline in June following repeated delays and wrangling over its future.
They plan to scale back the fleet and cut jobs but at least R10 billion in new funds is needed.
Government has yet to clarify where it will find the money.
The administrators – business rescue practitioners (BRP) – said government had so far advanced R9.3 billion to pay lenders, but the remaining short term funding needed had yet to materialise.
They said if they are not satisfied sufficient progress is made on advancing funding, a meeting of creditors will be convened on September 18 “to engage with affected persons”.