SA Express granted government support

The South African government has issued a guarantee of R1.1bn ($96m) to regional carrier SA Express enabling the ailing airline to continue as a going concern.

The South African government has issued a guarantee of R1.1bn ($96m) to regional carrier SA Express enabling the ailing airline to continue as a going concern.

The new Treasury support deal extends a previous guarantee of R539m ($47m) and provides a new guarantee of R567m ($49m).

According to local media reports, the carrier’s CEO, Inati Ntshanga, last week confirmed that cost-cutting measures had been implemented with the aim of bringing it back into profit in the next 18 months.

The support agreement comes a month after the South African authorities issued a R6.5bn ($566m) guarantee to South African Airways.   

TAGS: Africa
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