SAA bailout raises hackles at National Treasury

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A South African Airways aircraft on the apron of Frankfurt Airport in 2018.
A South African Airways aircraft on the apron of Frankfurt Airport in 2018.
Silas Stein/picture alliance via Getty Images

The story: South African National Treasury officials are reluctantly complying with orders to find funds to bail out the state airline, fearing they may erode the nation’s fiscal credibility, according to sources familiar with the matter.

The details: The sources said that the National Treasury is trying to re-prioritise funds in the medium-term expenditure framework due next month to fill the funding hole at South African Airways (SAA).

The background: SAA, which last made a profit almost a decade ago and has been reliant on state bailouts to survive, has been in administration since December.

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