Broke airline cant pay salaries
- Published on 3 Aug 2017
- HR Pulse News Desk
South African Airways (SAA) having run out of cash and being effectively bankrupt, it is feared it may not be able to pay salaries.
According to a cash-flow analysis provided by the airline to MPs on Wednesday, the state-owned airline went into a negative cash position in July when it had a net cash outflow of R568m. It projects a further deterioration in the months ahead with net cash outflows of R936m forecast for August and R918m in September.
A relative improvement to a negative cash flow of R134m is projected for October on the assumption that the airline gets financing and government support of R792m.
Source: SA Labour News
