SA Express, sister company of South Africa Airways, has announced that it plans to buy 30 new aircraft worth $829 million. Questions are being asked as to how the airline will be able to finance such a large purchase given its last year’s loss of R594m and total equity of R263.8m. SA Express has a R1.3bn guarantee in place but this expires in the next two years. Critics are predicting the airline will approach the government for cash to expand its fleet.
SA Express plans fleet expansion
SA Express, sister company of South Africa Airways, has announced that it plans to buy 30 new aircraft worth $829 million. Questions are being asked as to how the airline will be able to finance such a large purchase given its last year’s loss of R594m and total equity of R263.8m. SA Express has a R1.3bn guarantee in place but this expires in the next two years. Critics are predicting the airline will approach the government for cash to expand its fleet.