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South African Airways (SAA), is in the verge of bankrupt as banks refuse to lend money.
The flag carrier of South Africa considering selling its assets as its debt has ballooned to 28 billion Rand ($1.48 billion USD), against its assets value of only R13 billion, while its monthly operating costs are between R350 million and R450 million.
The airline said that it requires R21.7 billion to keep the airline flying, this includes an R12.1 billion government bailout.
According to sources close SAA, it is thinking of selling the airline’s catering unit, Air Chefs, and outsourcing or selling SAA Cargo.
SAA Technical (Saat), a division of SAA that is Africa’s largest maintenance, repair and overhaul (MRO) company, is also reportedly losing around R560 million a year.
The airline has a fleet of 46 aircraft, including 11 Airbus A330s and 16 Airbus A340s.