Cabinet has officially recommended that Dudu Myeni retain her position as head of the South African Airways (SAA) board. The new board has been appointed headed up by Myeni.
Guy Lietch, editor of SA Flyer Magazine says it is an extraordinary turn around because in April Finance Minister Pravin Gordhan was insisting that the SAA board be replaced in its entirety.
The record of Dudu Myeni with the airline has been nothing short of diabolical in terms of the damage wrought to the staff, the morale and the employees who have resigned..— Guy Lietch, SA Flyer Magazine
He says this decision smacks of back room deals and compromises.
The airline has been painted into a corner. It was right down to the wire in terms of deadlines with Hong Kong for instance and with South Africa getting the necessary guarantees in place.— Guy Lietch, SA Flyer Magazine
The appointment of the new board means Treasury will receive the R5-billion guarantee and the annual financial results, long overdue, will finally be released.
Leitch is one of the few voices who believes the airline has been trading profitably.
The money is not for bail-out loans, he says, but rather payment of loans due.
Listen to the interview below: