South African Airways plans to roll over $642 million of debt

Bloomberg

South African Airways is working to find ways to roll over 9.2 billion rand ($642 million) of debt by March as the loss-making state-owned carrier works to make more routes profitable, Chief Executive Officer Vuyani Jarana said.
While gross profit margins were negative on most routes when he started a year ago, domestic and regional routes are now making money except for Entebbe in Uganda, he said in an interview on Johannesburg-based Talk Radio 702.
South African Finance Minister Tito Mboweni said that he favours shutting down the loss-making national airline and starting a new carrier to replace it.
SAA is unlikely to attract an equity partner in its current state, and it’s doubtful the government will be able to sort it out, Mboweni said at an investment conference in New York.
Since Mboweni’s statement, the airline has experienced cancelations, Jarana said. “It is important that we get our messaging right.” The airline, which hasn’t make a profit since 2011, will take three years to break even, Jarana said. “There are no miracles or silver bullet that will take you to a break-even point before that,” he said. SAA is now looking to review contracts “A combination of transforming the airline and finding an equity partner are both options. It’s going to be harder to attract an equity partner if the business isn’t transformed.”