South Africa Rejects SAA Proposal to Change Airbus Plane Deal
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South African Finance Minister Nhlanhla Nene rejected an application from the country’s state-owned airline to renegotiate a plane-leasing deal with Airbus Group SE after concluding the proposal would leave the carrier at risk of default.
South African Airways has been ordered to implement the previously-approved transaction, the National Treasury said in an e-mailed statement on Thursday. Any move by the state-owned airline to conclude a significant deal with Airbus or any other party without approval from the Treasury would constitute an “act of financial misconduct which could be grounds for sanctions against the board," it said.