Loading...South African Airways Chief Executive Officer Vuyani Jarana has resigned from the post in the company. The Chief Executive Officer left the company which is in the red. As it is stated, it is due to little funding and no support from the government.
The former Vodacom Group Ltd. Executive was appointed at the airline company to help it overcome its crises. It has been on the verge of bankruptcy since 2011 bringing no profit. Moreover, it appeared in scandals connected with corruption. But he has decided to quiet. There was no state funding support. And as a result it was difficult to take any measure to make the company profitable again.
The Finance Minister claims that the government has no intention to fund the company. He stands for shutting it down. The company in its turn has agreed on Jarana’s resignation. They are grateful for his work and contribution.
The company got a $342 million bailout in the October to be able to repay loans. But a further funding has not been done and there was seen no intention of it. Thus it made it almost impossible to recover the company. The company has appealed to Bank of China and African Export-Import Bank for receiving funding.
And at the moment 3.5 billion loans from the banks within the country are due to be paid. They expire this month.
