'There is no justification to keep pumping money into SAA'

Should taxpayer cash continue to be pumped into beleaguered national airline South African Airways (SAA)?

Managing Editor at SA Flyer Magazine Guy Leitch says historically the existence of SAA cannot be justified given what it has cost the fiscal to date.

This is money that was supposed to be used for service delivery to the poor certainly not for the subsidisation of an airline which is effectively a middle subsidy.

Guy Leitch, Managing Editor at SA Flyer Magazine

Last week, finance minister Tito Mboweni announced the airline would receive another bailout to the tune of R5-billion to help it settle its debts.

READ: SAA CEO justifies millions spent on execs and consulting firms

There has been little justification for the R30 billion or so that is being pumped into SAA so far to keep it afloat. If you divide it into the number of jobs it created then there is really no justification.

Guy Leitch, Managing Editor at SA Flyer Magazine

However, SAA spokesperson Tlali Tlali says based on the calculation done by experts it would cost MORE to close SAA that to salvage it.

Looking at the salvaging of things we are aware that SAA for a number years has not been performing very well.

Tlali Tlali, SAA Spokesperson

ALSO READ: SAA 'fixable' says CEO, and pledges R100k to charity if he can't turn it around

We need to redirect the conversation and look at what is happening right now. Ever since the new CEO took over last year, there has been considerable progress that has been made.

Tlali Tlali, SAA Spokesperson

Listen to both interviews below...


This article first appeared on 702 : 'There is no justification to keep pumping money into SAA'


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