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Jarana appointment a step towards turning SAA around

South Africa has appointed Vodacom Group executive Vuyani Jarana as the new chief executive officer for the state airline, the Treasury said on Thursday.

Jarana’s appointment comes after a cash-flow analysis provided by the airline to MPs revealed that the state owned airline went into a negative cash position in July, when it had a net cash outflow of R568 million.

“Given that Mr Jarana has turned around a loss-making subsidiary of the Vodacom Group, Vodacom Business Africa, into profitable and growth business, we believe he will be key in turning around South African Airways,” said Finance Minister Malusi Gigaba, in a statement.

The airline projected a further deterioration in the months ahead with net cash outflows of R936 million forecast for August and R918 million in September.

An improvement to a negative cash flow of R134 million is projected for October on the assumption that the airline gets financing and government support of R792 million.

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