Only option was to put South African Airways on rescue, Ramaphosa says

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FILE PHOTO: A South African Airways (SAA) aircraft is seen parked on the tarmac at Cape Town International Airport in Cape Town, South Africa, November 14, 2019. REUTERS/Sumaya Hisham

JOHANNESBURG (Reuters) – South African Airways had to be placed on “business rescue” because there was no other viable and financially workable option for a credible future for the state-owned airline, President Cyril Ramaphosa said on Monday.

The airline was placed on business rescue by the government, a form of bankruptcy protection, on Thursday in hopes to save the cash-strapped state carrier from collapse.

“The financial crisis had become so grave that the only way to secure its survival was to take this extraordinary measure,” Ramaphosa said in his weekly newsletter.

Reporting by Nqobile Dludla; Editing by Tom Hogue

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