January 28 (Morebranches) – While South Africa struggles with a dwindling economy, it also has to fix its electricity outage problems and its state owned national carrier – South African airways. The business has recorded losses nine years consecutively and has only survived on bailout funds issued by a government obsessed about keeping its own airline. SAA has been accused of mismanagement, use of outdated planes, such as gas-guzzling Airbus A340s, flying marginal or unprofitable routes around Africa, New York and London.
The Development Bank of Southern Africa has agreed to pump in 3.5 billion rand ($239 million) to prevent the airline from going defunct. The DBSA’s mandate is to invest in infrastructure projects in South Africa and the rest of the continent that will help with economic development. Before this development, SAA has already started canceling flights in a bid to save cash after the government missed the deadline to provide funding for resuscitation.