A South African parliamentary committee will consider asking President Jacob Zuma to engage with his counterparts in Angola, Nigeria, Senegal and Zimbabwe concerning South African Airways (SA, Johannesburg O.R. Tambo) cash which is trapped in those countries, reports Jacaranda FM.
The airline reportedly has about ZAR1 billion (USD77 million) worth of unrepatriated ticket remittances stuck in bank accounts across Africa. It is, however, unable to access the funds given the chronic foreign currency shortages currently affecting multiple African states.
"We would like to use diplomacy. If somebody is not paying your money, he is making you his bank," said Deputy Finance Minister Sifiso Buthelezi, addressing the Standing Finance Committee.
Approximately USD30 million worth of remittances are stuck in Zimbabwe to airlines serving the country, including Ethiopian Airlines, South African Airways, Kenya Airways, Comair (South Africa) (operating as British Airways), Emirates, TAAG Angola Airlines, Air Namibia, and Malawi Airlines. As of June 2016, IATA reported that Nigeria owed USD591 million to foreign airlines, while Angola owed about USD237 million.
A corporate plan filed by South African Airways shows that the airline is on track for a net loss of ZAR853 million (USD65.7 million) this financial year, having failed to meet its revenue targets for three years running, reports Business Day. The South African Treasury is expected to provide a capital injection in the coming months.
