Government of South Africa has promised to inject another 5 billion rand ($400 million) into debt ridden South African Airlines to meet immediate financial obligations of the airline.
South African had been reporting financial loses since 2011, and the Government has given state guarantees totalling nearly 20 billion rand to help the airline to pay its debts and implement its turnaround plan.
The Treasury said it would follow its normal budgetary process, and finalise in time for the 2018 Medium Term Budget Policy Statement(MTBS).
SAA Chief Executive Vuyani Jarana said that the airline is looking at several measures to cut costs and as part it to reduce the current workforce of about 10,000 people to sustainable number.
However, Jarana said finding an alternative jobs for the people is his first priority before starting the retrenchment process. He added that the company hopes to break even in three years time and there onwards the cashflow will be in a stable condition for smooth operations.