You will keep paying for SAA - because the government is the airline’s biggest creditor, it could oppose the closure of the airline, meaning it will continue to limp on, funded by frustrated taxpayers.
Taxpayers – that’s you and me – will probably continue pouring money into a state-owned airline whether it’s SAA or a new national carrier resurrected from its remains.
Alf Lees, the DA member of the standing committee on public accounts , said the government’s letter of April 10 to the business rescuers, in which they refused further financing to the airline, now appeared to be either a lie or the government had since changed tack dramatically.“Now Gordhan is talking about a new airline that will rise from SAA’s ashes and says the government cannot provide money because there is no business rescue plan.
Members of Parliament were told that the airline would be unable to pay salaries this month and all workers were on unpaid leave. As a result of the Covid-19 coronavirus, a new airline will have to begin from a low base and will have to be built up gradually – maybe over a three-year periodThe business rescuers requested R7.7 billion from the government on April 2 to pay creditors, lay off certain personnel and provide operating capital.
He insinuated that the business rescue practitioners, in addition to having a deficient plan, were unable to justify the R30 million they had earned in the past three and a half months. He did, however, admit that it would be exceptionally difficult to start a new airline in light of the beleaguered position of the industry worldwide and without immediate prospects that flight routes would reopen any time soon.
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