State-owned regional carrier South African Express (SAX) has stated that it expects to break even this year after losing R187m in 2010. SAX CEO Inathi Ntshanga has confirmed that the airline would not need a bail-out of the type contemplated for its larger sibling South African Airways (SAA).
Last year SAX made the headlines after the auditor-general took over the audit of the airline accounts that were revealed to be a shambles.
"We are busy with the clean up … we have broken the back of the source of all the errors now," said Ntshanga to Business Day.
He expected the financial statements for the 2011-12 year to be tabled in Parliament by July. In the past year, SAX has been able to cut R126m of its costs.
The restatement covered three financial years and revealed that equity on the balance sheet had been eroded from R1.1bn to R463m — to the extent that SAX no longer complied with the lease agreements on aircraft and had breached loan covenants.
SAX to break even
