SAA is on track with its turnaround strategy with quarter one results showing that the company is ahead of the plan in its trading performance, the airline said on Wednesday.
“We have always maintained that it will take us until 2021 to break even,” the airline said. “The quarter one results, reflect the Board and management’s commitment to turn the airline around despite the challenges.”
“The airline’s quarter one performance shows a significantly improved performance based on the targets we must reach,” said SAA spokesperson Tlali Tlali.
Tlali also rubbished speculation that the airline was bankrupt. “SAA is not bankrupt and will not file for bankruptcy,” he said. Moreover he said the airline would continue to honour its obligations to its customers, suppliers and creditors.
The statement follows a report in the Business Day that Treasury may “write down” roughly R23bn of its investment in SAA.
A write-down is the accounting term used to describe a reduction in the book value of an asset due to economic or fundamental changes in the asset, suggesting that Treasury may write off part of the SAA’s debt.
SAA on track for 2021 breakeven - statement
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