'It’s going to cost R40bn to R50bn to keep this flag-waving exercise going'
Minister Pravin Gordhan is expected to announce an equity partner for SAA on Friday
Aviation expert Guy Leitch says equity partners may be a combination of global airlines and Harith, the owner of Lanseria Airport
It will take between R40 billion and R50 billion to keep SAA going, according to Leitch
Unconfirmed reports have it that Minister of Public Enterprise Pravin Gordhan will announce a strategic equity partner for South African Airways (SAA) on Friday.
The rejigged airline - in business rescue since 2019 – has been given R10.5 billion to cover the process.
It emerged from business rescue in April 2021.
SAA will share R2.7 billion (of the R10.5 billion) with its subsidiaries Mango (R819 million), SAA Technical (R1.6 billion), and Air Chefs (R21 million).
Gordhan’s expected announcement will give longsuffering taxpayers an indication of progress in the rebuilding of the airline’s reputation and loss of public trust.
SAA will likely keep its name and the government is expected to retain some of its shares.
Pippa Hudson interviewed aviation expert Guy Leitch (scroll up to listen).
There’s a very plausible rumour… that the strategic equity partner will be a combination of global airlines… and Harith as the money bags… They own Lanseria Airport…Guy Leitch, aviation expert
Would you spend R10 000 on a ticket if there was a possibility that the airline could suddenly fold? … They’re going to have an enormous problem getting people back… They might have to discount tickets… They’ll be burning through taxpayers’ cash quickly.Guy Leitch, aviation expert
A lot of people are saying it is illegal [sharing of business rescue money with SAA subsidiaries] …Guy Leitch, aviation expert
On Tuesday, we’ll hopefully hear from the labour court in terms of the [pilots’] strike…Guy Leitch, aviation expert
... We’re going to see a bill of R40 billion to R50 billion to keep this flag-waving exercise going…Guy Leitch, aviation expert
Source : https://www.flickr.com/photos/air_traveller/13635434545/