Members of Parliament on Wednesday heard a plea from the troubled state airline, South African Airways (SAA), for an injection of R744,4-million to pay for one-off labour restructuring costs. The cash, they were told, is needed before the last day of November.
Parliament's finance portfolio committee heard an appeal from the airline to support Finance Minister Trevor Manuel's Adjustments Appropriation Bill which will allow the money to be paid over, even though it was not mentioned in his budget speech in February.
SAA acting chief financial officer, Clive Else, told the committee that to restore the company to profitability -- to a bottom-line profit of 7,5% which he said is its peer group standard -- will take a minimum of a R2,7-billion improvement in its finances.
Departmental initiatives, which include labour restructuring, will amount to R1,01-billion of this.
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