National Treasury has given SA Express a lifeline grant of R300 million guarantee from its contingency reserves, the airline is expected to make better use of the funds.
This follows after the airline was grounded last month after failing to honour its payments to Airports Company South Africa (Acsa).
The airline had to account to Parliament’s Public Enterprises committee last month.
SA Express CEO Siza Mzimela outlined before the committee how the guarantee would alleviate pressure off the airline.
“If we get the money today, we’d have two aircraft out in the space of a month, one in the space of a week [sic].”
Treasury was promised by SA Express that the money would be better spent, unlike the previous R1.2 billion it received last year.
SA Express said the R1.2 billion went into its historic debt to Nedbank and Rand Merchant Bank
For the airline to access the latest R300 million facility, banks needed the guarantee from Treasury.
The airline is not out of the woods just yet as the R300 million will not be enough to cover all its debts.