Bid to rescue debt-laden South African Airways from collapse

The airline has not been profitable since 2011

South African Airways is on course to be saved from collapse through an emergency government loan deal.

The government said it would give the airline 2bn rand ($136m; £104m) and another 2bn rand would come from lenders.

With SAA placed “into business rescue”, the money was intended to lead a radical restructuring of the airline, Public Enterprises Minister Pravin Gordhan said.

The failing airline has not made a profit since 2011 and has lost more than $2bn over the last 13 years.

It was on the brink of collapse last month when staff went on strike over plans to cut a fifth of the workforce.

When a company is in business rescue, an outsider normally takes charge in an attempt to knock it back into shape.

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