Johannesburg (AFP)

National airline South African Airways (SAA), which has been heavily indebted for years, has been awarded a new rescue plan as part of a restructuring process, the South African government said Thursday.

"SAA's board of directors has passed a resolution aimed at rescuing the company," South African Minister of Public Enterprises Pravin Gordhan said in a statement.

"This decision is supported by the government," he added.

As part of the plan, SAA will receive 2 billion rand (124 million euros, 137 million dollars) from the state and 2 billion rand from lenders, said Pravin Gordhan.

This financial assistance must make it possible "to facilitate a radical restructuring of the company", according to the minister.

The goal is to "avoid a disordered collapse of the company" and "try to keep as many jobs as possible," he added.

The airline acknowledged, however, that the bailout and restructuring plan represented "many challenges and uncertainties for the staff", speaking of "difficult times".

Unions did not immediately react to these announcements.

SAA, the second largest airline in Africa, is going through very serious turbulence, financial and social.

It has a debt of at least 9.2 billion rand, or 570 million euros, and has been surviving for years on public money.

South African Airways experienced a seven-day strike in November which resulted in the cancellation of hundreds of flights. The movement ended with the signing of a salary agreement providing for a salary increase of 5.9%, retroactive to April 1, 2019, for ground and seagoing personnel.

In November, however, the public group was unable to pay the full salaries of its employees and had to apply for a loan of 2 billion rand.

In early November, SAA announced a restructuring plan that could result in the dismissal of nearly a thousand of its 5,200 employees.

SAA is one of many South African public companies financially dying, plaguing the accounts of the state that steals regularly to their rescue.

President Cyril Ramaphosa, who succeeded Jacob Zuma in February 2018 entangled in corruption scandals, promised to clean up these companies.

© 2019 AFP