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It’s official! We're getting a brand-new, taxpayer funded (R16 billion) airline
Creditors have approved the business rescue plan for South African Airways (SAA), enabling the government to launch a new taxpayer-funded airline.
The new airline will need to take R16 billion from South Africa’s dwindling kitty to take off.
The airline will also need additional funds for 1000 employees who will be hired to form part of the new airline.
The Department of Public Enterprises has appointed Phillip Saunders as acting CEO, and will announce a new board "soon".
Retrenchment packages will now be paid to more than 2700 employees.
Arabile Gumede (in for Bruce Whitfield on The Money Show) interviewed Guy Leitch, Managing Editor at SA Flyer Magazine.
Gumede also spoke to Advocate Christopher Shabangu, Deputy President of the South African Cabin Crew Association.
The routes are much more constrained. It’ll fly 25% of what it used to…
Guy Leitch, Managing Editor - SA Flyer Magazine
The R16 billion is not a real number… if you add all the numbers together you get to nearly R30 billion.
Guy Leitch, Managing Editor - SA Flyer Magazine
Mr Saunders… his CV is remarkably lightweight.
Guy Leitch, Managing Editor - SA Flyer Magazine
We’re not happy about the interim CEO… Two steps forward, 20 steps back… The same people who brought the airline down are the people who must take it forward…
Advocate Christopher Shabangu, Deputy President - South African Cabin Crew Association
Government doesn’t have money – that’s understandable… we need a strategic partner. Government will have to relinquish shares in the state-owned company to a strategic partner…
Advocate Christopher Shabangu, Deputy President - South African Cabin Crew Association
Listen to the interview in the audio below.
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