Cape Town - South African Airways has avoided paying a hefty R603m bill to Airbus, after it informed Treasury on Monday that it had started the process to conclude former finance minister Nhlanhla Nene's approved deal.
This is the full statement from Treasury, starting off with background information into the Airbus deal:
In 2002 SAA entered into a purchase agreement with Airbus to acquire A320 aircraft. The agreement has proved financially onerous to the airline. In April 2015, the board of SAA applied for approval from the former Finance Minister Nhlanhla Nene to cancel the purchase of ten A320 aircraft from Airbus and, instead, enter into an operating lease on five A330-300 aircraft with Airbus. During July 2015, the former minister of Finance approved this request.