for subscribers

Airbus said to be happy with Treasury-backed SAA deal

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
(iStock)
(iStock)

Johannesburg - Airbus Group is willing to proceed with a government-approved deal to lease five A330 wide-body planes to South African Airways, even after the state-owned carrier’s chairwoman sought to renegotiate the deal in defiance of the country’s National Treasury, according to a person familiar with the situation.

SAA would need to send a legally-binding letter of agreement signed by both the airline and the Treasury by a December 21 deadline to secure the lease arrangement, said the person, who asked not to be identified as the matter is private. That would remove the possibility that payments related to an earlier deal to buy 10 A320 planes from Airbus would be due from SAA, threatening the financial stability of the unprofitable carrier.

SEE: TIMELINE: All you need to know about the controversial SAA-Airbus deal

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
16.76
(-0.13)
ZAR/GBP
21.35
(+0.09)
ZAR/EUR
19.61
(+0.12)
ZAR/AUD
11.97
(+0.51)
ZAR/JPY
0.16
(-0.01)
Gold
1883.90
(-1.02)
Silver
23.54
(-3.54)
Platinum
866.00
(-0.71)
Brent Crude
42.24
(+0.55)
Palladium
2218.50
(+0.27)
All Share
53265.33
(-0.10)
Top 40
49126.16
(-0.05)
Financial 15
9570.37
(+0.53)
Industrial 25
71886.85
(+1.23)
Resource 10
52935.40
(-1.85)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1340 votes
It depends on how the funds are used.
73% - 8753 votes
No. We should have gotten the loan elsewhere.
16% - 1929 votes
Vote