The government has earmarked R819m to recapitalise SAA’s beleaguered subsidiary Mango. The figure was revealed in Parliament yesterday, according to a Business Day report.

The R819m will form part of the R2.7bn also allocated to SAA subsidiaries SAA Technical and Air Chefs, Treasury chief director of state-owned enterprises Ravesh Rajlal said during a briefing by Treasury officials to Parliament’s Standing Committee on Appropriations.

Rajlal said if an assessment proves that Mango needs more than the R819m, it might get more but this would be at the expense of SAA Technical and Air Chefs as the R2.7bn envelope will not be increased.

The R2.7bn forms part of the R10.5bn allocated to SAA in the October Medium-Term Budget Policy Statement.

Low-cost carrier Mango is short of cash and has been expecting the allocation in the Special Appropriation Bill for several months to relieve its situation, but Parliament has delayed passing it. It is only now under consideration by the appropriations committee and Mango has been informed it will only get the money in June.

The airline’s management proposed to the boards of Mango and SAA that it be placed in business rescue from May until July to keep its creditors at bay.

It also does not have enough cash to pay May salaries if the government funding does not come through in time.

Full Business Day report