SAA Hanging by a Thread, Lifeline...

South Africa has pledged 10.5 billion rand ($650 million) to South African Airways (SAA), one of the administrators of the ailing state-owned airline said on Friday.

The administrators took control of SAA in December after almost a decade of financial losses and have been trying to keep it afloat as the coronavirus pandemic compounds its longstanding problems.

Administrators published a restructuring plan in June, but the more than 10 billion rand required for it to work has not materialised since the airline's creditors approved it in July.

Administrator Siviwe Dongwana told a creditor meeting called to discuss the funding issue on Friday: "We have since received a further communication from government with the support of the National Treasury that indicate that there is a very clear cabinet commitment to provide funding to SAA to the tune of 10 and a half billion."

"The letter also articulates that the mechanisms and the timelines are yet to be finalised," he added.