Gigaba to reveal plan to assist struggling SAA

Under Dudu Myeni’s lengthy tenure, SAA has come close to crashing and burning.

FILE: Finance Minister Malusi Gigaba. Picture: GCIS

CAPE TOWN – The focus at South African Airways (SAA) now shifts to the R10 billion that the cash-strapped national carrier needs to stay afloat.

Finance Minister Malusi Gigaba is expected to reveal how the government intends to finance SAA’s bail out when he delivers his mid-term budget policy statement next week.

Under Dudu Myeni’s lengthy tenure, SAA has come close to crashing and burning.

The Democratic Alliance’s deputy finance spokesperson Alf Lees says that her departure is just a small step towards saving the national carrier.

“The next step is going to be to find R10 billion within the next week to bail out SAA… already paid R5 billion and another R5 billion needed for working capital. Now where that money’s going to come from is anyone’s guess.”

Government appears to have abandoned its plans to sell off its stake in Telkom to fund the bail out.

Lees says that the board shake-up is too little, too late to save SAA and that ploughing more billions into the airline will put unnecessary strain on the fiscus.

(Edited by Shimoney Regter)