Picture: SUNDAY TIMES
Picture: SUNDAY TIMES

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SOUTH African Airways (SAA) needs about R2bn to R3bn a year to survive, a requirement that would have to be dealt with when deciding on the future of the airline, Finance Minister Pravin Gordhan said on Thursday in reply to questions in Parliament about the budget.

No provision was made for a further capital injection or state guarantee for SAA in the 2016-17 budget tabled on Wednesday. The airline is surviving on a R14.4bn guarantee and has not been able to table its 2014-15 financial year yet because of concerns about its going-concern status.

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    Earlier this month, Mr Gordhan requested a month’s extension for SAA to table its annual report.

    In reply to questions posed by members of four parliamentary committees to the minister and the Treasury team on Thursday, Treasury director-general Lungisa Fuzile said SAA had used a R13.4bn guarantee and was expected to have used the remaining R1bn by the end of next month.

    Discussions were taking place with SAA to improve its financial position.

    Mr Gordhan stressed that getting SAA on a sound footing would not happen overnight. The immediate priorities were to stabilise the airline by appointing a new board and executive, and formulating a financial plan.

    "We want a package of solutions and not a once-off thing," he said.