SAA has survived on state-guaranteed loans, failing to submit financial statements for two years.

JOHANNESBURG - Finance Minister Pravin Gordhan approved an application from the country's cash-strapped national airline for a guarantee as a going concern, the ministry said on Friday.

South African Airways (SAA) has been surviving on state-guaranteed loans and has failed to submit financial statements for the past two years, with results for 2015/16 held back after the Treasury refused to grant it R5 billion in additional loan guarantees.

Earlier today, the Deputy Finance Minister Mcebisi Jonas said would not focus on the fact that Dudu Myeni has been reappointed as the chair of SAA but will look at the airline's new board as a collective.

Last week cabinet appointed a new board amid speculation that President Jacob Zuma and Minister Gordhan have clashed over whether Myeni should stay on in the post.

The board chair has now been appointed for a term of just one year, while the rest of the board has been appointed for a longer period.

'SAA IN THE RIGHT HANDS'

SAA board chair, Dudu Myeni says the airline is in the rights hands and says the fact it has met all its obligations, revenue is improving and that new routes have been developed, proves this.

Myeni was speaking after meeting with a group of concerned citizens, which included Black First Land First leader Andile Mngxitama and president of the Progressive Professionals Forum, Mzwandile Manyi, yesterday at the airlines offices.

While Myeni assures South Africans that SAA is in good hands, the Democratic Alliance is challenging the rationality of her reappointment in court.

The party believes Myeni had a disastrous performance at the airline and claims under her, SAA received at least R15 billion from tax payers just to keep the airline going.

Myeni, however, says the airline has never received cash injection from government.

Additional reporting by Stephen Grootes & Clement Manyathela