Comair loses bid to stop SAA bailouts (amounting to R30 billion since 1999)

The Pretoria High Court ruled against Comair’s bid to stop Government’s bailouts of South African Airways (SAA).

Comair argued it was unfair that Government supported SAA financially when it’s continually operating at a loss and that the bailouts didn’t conform to the Domestic Air Transport Policy or the Public Finance Management Act.

SAA has received more than R30 billion from Government since 1999.

In January this year Finance Minister Nhlanhla Nene unveiled another bailout of R6.5 billion.

We interviewed Leon Louw, Executive Director of the Free Market Foundation, about what the High Court ruling means for South Africa.

Listen to the audio (scroll down) for more detail.

The judgment wasn’t a surprise. But people, and hopefully voters, will be critical about the fact that Government can simply redirect a budget meant for the poor to subsidise the rich.

Leon Louw, Executive Director of the Free Market Foundation

There’s a cover-up of some sort. We don’t know the full story. I’m surprised that the media is mum about this.

Leon Louw, Executive Director of the Free Market Foundation

There is no such thing as a “strategic route”. That’s the argument the Apartheid government used!

Leon Louw, Executive Director of the Free Market Foundation

This article first appeared on 702 : Comair loses bid to stop SAA bailouts (amounting to R30 billion since 1999)


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