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SAA cash crunch builds pressure for change

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SAA chairperson Dudu Myeni.
SAA chairperson Dudu Myeni.

Johannesburg – Government is under increasing pressure to enforce changes at South African Airways (SAA) after the carrier lost access to a short-term credit facility from Citigroup, exacerbating an already weak financial position.

The US bank cancelled a R250m banking facility for SAA on December 24, Moneyweb reported on Monday, citing an internal airline document.

As a result, SAA may not have access to free cash as of January 15, the report said. SAA spokesperson Tlali Tlali confirmed the withdrawal of the Citigroup facility and said the company is preparing a statement on the implications for its cash flow.

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