SAA silent over reported R1bn Standard Bank bailout
· Citizen
Has South African Airways (SAA) sneaked off with another R1 billion taxpayer-backed bailout?
SAA may have returned to South Africa’s banking sector for funding, with sources claiming Standard Bank has made a R1 billion credit facility available to the state-owned airline.
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Questions surround reported funding
If confirmed, the facility could mark a return to the kind of commercial borrowing that preceded SAA’s business rescue and raise fresh questions about whether taxpayers remain exposed.
Sources said the facility had been made available to SAA. However, it is unclear whether the purported credit line is backed by a government guarantee, secured against SAA assets, or approved by National Treasury.
Standard Bank declined to comment. SAA also declined to confirm or deny the alleged funding.
“SAA does not discuss or disclose its operational plans and decisions in the media. This principle applies uniformly to all operational matters,” said spokesperson Mphilo Dlamini.
That is despite its financial position remaining a matter of public interest.
Dlamini did not dispute that point, saying: “There are appropriate forums where we account and report as an organisation. The media gets invited to those forums. Otherwise, this approach risks a lot of information being taken out of context.”
The department of transport, as shareholder representative, also stopped short of answering whether it had supported the alleged facility.
Spokesperson Collen Msibi said he would provide “an official response after consultation with the shareholder [Minister Barbara Creecy]”, but no response had been received by the time of publication.
Experts question taxpayer exposure
Financial experts say it is unlikely a bank would have granted the facility without solid security.
In previous iterations of the airline, which went bankrupt, banks had their loan paybacks guaranteed by the government.
Organisation Undoing Tax Abuse chief executive Wayne Duvenage said the unanswered questions made the structure of the alleged facility as important as its value.
“If SAA’s R1 billion credit facility with Standard Bank is not backed by Treasury, it will still have to have been approved by the department of transport and Treasury in line with [Public Finance Management Act] rules,” he said.
“If Treasury approved, but is not backing this facility, this means that SAA must have offered its assets, such as buildings, as collateral to the bank.”
Duvenage said the purpose of the borrowing would determine whether it represented prudent financing, or a warning sign.
“The question is whether they are purchasing aircraft or other assets which back the credit guarantee, which may make sense, or whether they are using long-term assets to plug short-term operating costs, which will be used to fund working capital.
“If the latter, this is a serious concern. If SAA goes belly-up, Standard Bank may attach the state’s SAA assets and the state and public are at a loss again.”
Previous funding remains under scrutiny
Should the alleged facility be confirmed, it would represent the latest significant funding intervention involving SAA.
Earlier this year, The Citizen reported that the airline’s 2025 annual report included a R1 billion government share capital injection from its sole shareholder, the state.
Although presented as share capital, rather than a bailout, economists and aviation analysts questioned whether the distinction amounted to little more than accounting semantics.
The airline reported a R155 million profit, but analysts questioned the quality of those earnings because of the sale of Heathrow landing slots and other once-off accounting gains, rather than evidence of sustained profitability from airline operations.
The alleged funding also follows operational questions that surfaced last week after The Citizen reported that SAA had allegedly been forced to tanker jet fuel into Durban, after pilots were reportedly unable to uplift fuel at King Shaka International Airport.
Sources said flight crews were instructed to depart Joburg and Cape Town carrying sufficient fuel to return because aircraft were allegedly unable to refuel in Durban.
Pilots claimed they had been told no jet fuel was available to SAA, although other airlines continued to fuel normally.
SAA denied suggestions at the time that it faced a fuel supply problem.
SAA faces continued scrutiny
In recent months, The Citizen has reported on the resignation of chief executive John Lamola, the departure of senior executives and board members, concerns over succession and questions surrounding the airline’s financial reporting after its 2025 annual report relied on extraordinary items.
State-owned airlines have cost taxpayers about R145.3 billion since 2000, with SAA accounting for about R133.3 billion of that total.