South African Airways has announced that it will continue to honour its flight obligations to cargo and evacuation flight customers all through this month.

The South African government has agreed to fund a restructuring of South African Airways (SAA), if a business rescue plan for the struggling state-owned airline is adopted, a copy of the draft plan showed on Monday.

SAA entered business rescue – a local form of bankruptcy protection – in December, after which administrators took over the running of the airline and have been working on a plan to save the business.


The draft plan said the government had agreed to make a working capital injection, which the administrators estimated at not less than 2 billion rand ($114.86 million), fund employee layoffs, which could cost up to 2 billion rand, and make an allocation of at least 600 million rand towards the repayment of general concurrent creditors.

A spokeswoman for the administrators confirmed the draft plan was genuine.

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