Taxpayer? You’re giving SAA and its rich flyers another R5bn - not kidding!

We were reappointed to government towards end of February. So, eight months gone nobody is coming forward to say 'I know who is corrupt at SAA'… Why are corrupt people being protected? Why are you protecting corrupt people? Why are you not coming forward? If we want the airline to survive, we have to clean out the dirt.

Public Enterprises Minister Pravin Gordhan to SAA staff

By every rational measure, SAA should be closed down… It’s a rubbish business...

Bruce Whitfield, The Money Show

Year after year after year South Africa’s long-suffering taxpayers bail out South African Airways (SAA).

It hasn’t made a profit since 2011, and the airline doesn’t expect one before the 2021 – 2022 financial year at the earliest.

However, taxpayers are keeping it alive (for whose benefit?) with billions that keep on coming (and going).

In the past 10 months alone, Treasury has doled out R15 billion to SAA.

Nevertheless, it will soon fork out another R5 billion to keep SAA afloat.

According to the Department of Public Enterprises, it will be the final bailout.

Finance Minister Tito Mboweni last week suggested the airline should close down.

The Money Show’s Bruce Whitfield interviewed Linden Birns, MD at Plane Talking.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

There are enough failed privately owned airlines as much as there are successful state-owned ones.

Linden Birns, Plane Talking

SAA has been crying to be properly recapitalised for as long as I remember…

Linden Birns, Plane Talking

The aviation industry trades largely in dollars. SAA generates most of its revenues in rand.

Linden Birns, Plane Talking

The market fundamentals are very strong… the size of the market doubles every 15 years… We’re looking at 11.4% annual growth over the next 10 years [from China]… There’s a lot of opportunity…

Linden Birns, Plane Talking

Enjoy The Money Show, but miss it sometimes?

Get the best bits emailed to you daily, right after it ends:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Taxpayer? You’re giving SAA and its rich flyers another R5bn - not kidding!


Recommended

by NEWSROOM AI
Read More
Prescribed assets: 'Are unions sleeping? Why are they not protecting members?'

Prescribed assets: 'Are unions sleeping? Why are they not protecting members?'

The ANC is eyeing your pension. Bruce Whitfield interviews Warren Ingram, a personal financial advisor at Galileo Capital.

Should Zimbabwe officially join South Africa in a monetary union?

Should Zimbabwe officially join South Africa in a monetary union?

What will happen to the rand if it does? Bruce Whitfield interviews Tim Nhamo, a currency specialist at Ironhead Trading.

Transnet gets Chinese rail supplier to pay back R618 million in looted funds

Transnet gets Chinese rail supplier to pay back R618 million in looted funds

Transnet is on a mission to get back what was stolen from it. Bruce Whitfield interviews its Chairperson, Popo Molefe.

South Africans are getting poorer and poorer

South Africans are getting poorer and poorer

It's not your imagination; we’ve lost a decade. Bruce Whitfield interviews Johann van Tonder, a researcher at Momentum.

Tito Mboweni paves the way for a fully-fledged, state-owned commercial bank

Tito Mboweni paves the way for a fully-fledged, state-owned commercial bank

The Minister will introduce a Bill to allow for the creation of a state-owned commercial bank, says Chantél van Zyl.

Bosasa: Angelo Agrizzi spills his guts to stay out of jail

Bosasa: Angelo Agrizzi spills his guts to stay out of jail

The Money Show’s Bruce Whitfield interviews Kyle Cowan, an investigative journalist at News24.

Popular articles
[LISTEN] John Maytham gets a taste of life on board Cunard’s Queen Elizabeth

[LISTEN] John Maytham gets a taste of life on board Cunard’s Queen Elizabeth

John Maytham and his team hopped on board the luxury ocean liner, which has docked in Cape Town, during a special outdoor broadcast.

Looking for something new to do in CT? Why not consider cycling across the ocean

Looking for something new to do in CT? Why not consider cycling across the ocean

Cape Town Water Bikes is an unusual way to experience the coastline of the South Peninsula. Hop on a water bike and pedal away!

Eusebius: 'We are living in a worse nightmare than we thought'

Eusebius: 'We are living in a worse nightmare than we thought'

Eusebius McKaiser shares his views on the former COO at Bosasa, Angelo Agrizz's testimony at the Zondo Commission.

Bosasa's dirty laundry out in public and Sapo vows to cooperate

Bosasa's dirty laundry out in public and Sapo vows to cooperate

Allegations of massive corruption, tender fraud and blatant mismanagement have emerged at the state capture inquiry.

No more swiping without sweating! Discovery Vitality introduces new swipe system

No more swiping without sweating! Discovery Vitality introduces new swipe system

The health programme piloted a new tag system at the exit points in a bid to crack down on fake gym visits at a few fitness clubs.

Woman arrives in CT after driving from Scotland to SA in her old Morris Minor

Woman arrives in CT after driving from Scotland to SA in her old Morris Minor

The journey began in Aberdeen, her father's birthplace, in June last year and ended in Mother City over the weekend.

[LISTEN] Discovery Health defends decision to shift certain ops to day hospitals

[LISTEN] Discovery Health defends decision to shift certain ops to day hospitals

Kieno Kammies speaks to Dr Ryan Noach Deputy Chief Executive at Discovery Health and Dr K who says his patients are suffering.