Bid to rescue debt-laden SAA from collapse

BBC News

South African Airways has been placed under a state-led rescue plan in a bid to prevent it from collapsing because of its huge financial crisis. 

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 state-owned airline, Public Enterprises Minister Pravin Gordhan said.

"It must be clear that this is not a bailout," he added. 

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.