South African Airways, South Africa’s national carrier, is now “technically bankrupt.” The airline has suffered from a number of issues for many years now, most notably including having its regional carrier South African Express grounded due to safety issues earlier this year.
In the fall of last year, South African Airways received a bailout package worth ZAR1.8 billion Rand (USD$135 Million, and the airline currently has some ZAR19.1 million Rand worth of state guarantees, yet the airline continues to struggle. For now, the airline is working with the South African government to secure funding until 2021.
The Star Alliance member is also looking to sell some of its assets in order to raise funds. The airline’s board has looked at the possibility of separating the passenger mainline services and its cargo unit. In addition, South African is reportedly considering selling Air Chefs, its catering department, and either outsourcing or selling its cargo unit to a third party that could continue cargo services. South African Airways’ cargo arm is one of the few profitable assets held by the carrier.
Featured image from Star Alliance.