South Africa is expected to spend more than $ 1 billion to help South Africa Airways work again

The South African government has just announced plans to provide financial assistance worth 16.4 billion Rand. They are trying to revive the national airline South Africa Airways (SAA) which is currently in a state of heavy losses.

South African Finance Minister Tito Mboweni said the government has arranged Rand 16.4 billion to help SAA fulfill its financial obligations.

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Minister Tito Mboweni said that according to the plan, the bailout package will be disbursed within the next 3 years. However, the allocation plan will be continuously adjusted and updated according to the actual operational situation of SAA to bring the highest efficiency.

This 100-year-old airline announces plans to cease operations on most domestic flights and some international flights. At the same time they consider selling some assets and cutting staff to minimize operating costs.

The SAA staffs went on strike to protest plans to cut wages and lay off 900 employees. They forced the airline to cancel all flights for several days. SAA said a union strike representing about 3,000 of its 5,000 employees caused damages to the company 50 million Rand.

In fact, SAA has started to suffer from losses since 2008 due to weak management capacity. They lead to the loss of a large number of passengers to low-cost airlines.

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In addition, operating costs are increasing, especially fuel prices. They have helped push one of Africa’s most historic airlines into a spiral of loss. The largest airline in South Africa, South African Airways (SA) is also the national airline. As a Star Alliance member, SA flies non-stop to more than 40 destinations in 26 countries.

One of the top famous airports in South Africa that you will not be missed is Cape Town Airport. This is the operational center of South African Airways. Cape Town International Airport is the second largest airport in South Africa. After Johannesburg International Airport, that’s the third largest in Africa and the main gateway for transporting tourists.