SAA is on its knees and requires another bailout from the government.
Cape Town – The Standing Committee on Public Accounts will on Thursday visit SAA due to the deterioration of the airline’s finances.
SAA is on its knees and requires another bailout from the government.
In a report that has been given to Scopa, SAA has shown that it suffered a loss of R5.4 billion last year and another loss of R5bn this year, further deepening its financial crisis. The government has recently given it R5.5bn and will pay off R9.2bn to settle its debts.
However, Scopa said it would visit the airline on Thursday to look at its situation.
While answering questions on Wednesday, Deputy Minister of Public Enterprises Phumulo Masualle said they were working on getting the airline back on track.
Some opposition parties said it must be sold.
The government has indicated that it would consider a private equity partner for the airline and Cosatu expressed its support for the idea.
Masualle said the government has attached conditions to the bailouts given to State-Owned Entities.
He said for SAA they will engage with all stakeholders including the unions on its precarious financial position.
“Underway the process is to engage all stakeholders in SAA to bring that airline to sustainability. Given the urgency of some of the measures regarding SAA the Minister will be making an announcement soon to the impasse the company is facing,” said Masualle.
Political Bureau
