The state-owned Development Bank of Southern Africa is providing 3.5 billion rand, equivalent to about $240 million, in funding to keep South African Airways operating as it restructures.
South African Airways' board in December put the carrier, which has not turned a profit in nearly a decade, in a "business rescue" bankruptcy program. The carrier in a statement said "potential funders" are considering additional funding once its restructuring plan is adopted, with which it said it intends to "develop a sustainable, competitive and efficient airline."
The carrier suspended some flights this week as a money-saving move but largely has maintained its regular schedules since entering business rescue. Last week, it even introduced a new Airbus A350-900 aircraft for its service between New York's John F. Kennedy International Airport and Johannesburg, which also will help in costs through lower fuel consumption.
In its statement, South African Airways said the latest funding should provide "comfort that the rescue process is on a significantly sounder footing, and that passengers and travel agencies and airlines partners may continue to book travel on SAA with confidence."