'There is no justification to keep pumping money into SAA'

Should taxpayer cash continue to be pumped into beleaguered national airline South African Airways (SAA)?

Managing Editor at SA Flyer Magazine Guy Leitch says historically the existence of SAA cannot be justified given what it has cost the fiscal to date.

This is money that was supposed to be used for service delivery to the poor certainly not for the subsidisation of an airline which is effectively a middle subsidy.

Guy Leitch, Managing Editor at SA Flyer Magazine

Last week, finance minister Tito Mboweni announced the airline would receive another bailout to the tune of R5-billion to help it settle its debts.

READ: SAA CEO justifies millions spent on execs and consulting firms

There has been little justification for the R30 billion or so that is being pumped into SAA so far to keep it afloat. If you divide it into the number of jobs it created then there is really no justification.

Guy Leitch, Managing Editor at SA Flyer Magazine

However, SAA spokesperson Tlali Tlali says based on the calculation done by experts it would cost MORE to close SAA that to salvage it.

Looking at the salvaging of things we are aware that SAA for a number years has not been performing very well.

Tlali Tlali, SAA Spokesperson

ALSO READ: SAA 'fixable' says CEO, and pledges R100k to charity if he can't turn it around

We need to redirect the conversation and look at what is happening right now. Ever since the new CEO took over last year, there has been considerable progress that has been made.

Tlali Tlali, SAA Spokesperson

Listen to both interviews below...


Recommended

by NEWSROOM AI
Read More
I became a millionaire at 20 and at 21 it was all gone - Minnie Dlamini Jones

I became a millionaire at 20 and at 21 it was all gone - Minnie Dlamini Jones

The MD skincare range founder talks about the new venture and how she started in the entertainment industry.

[WATCH] Husband's vacuum cleaner trick has wife and social media intrigued

[WATCH] Husband's vacuum cleaner trick has wife and social media intrigued

Khabazela shares some of the videos that went viral on Twitter and Facebook.

[WATCH] Guy attempting to fix potholes has social media in stitches

[WATCH] Guy attempting to fix potholes has social media in stitches

Khabazela shares some of the videos that went viral on Twitter and Facebook.

'We might lose certain capabilities without a cash injection' - SANDF

'We might lose certain capabilities without a cash injection' - SANDF

South African National Defence Force Chief, General Solly Shoke says the unit is taking serious financial strain.

SANDF flatly denies claims of weapons smuggling to Cuba on SAA plane

SANDF flatly denies claims of weapons smuggling to Cuba on SAA plane

SANDF General Solly Shoke told the media that there is no truth in these claims and that the Defence Force is 'above politics'.

SAA: It is only the shareholder who can make pronouncement on privatisation

SAA: It is only the shareholder who can make pronouncement on privatisation

SAA spokesperson Tlali Tlali explains what transpired in their meeting with Solidarity and their stand on privatisation.

Popular articles
Student climate activist challenges Dept of Environmental Affairs

Student climate activist challenges Dept of Environmental Affairs

Raeesah Noor-Mahomed has joined schoolkids around the world by embarking on a Friday school boycott over climate inaction.

Dead wrong! US cops bust driver using carpool lane with fake skeleton passenger

Dead wrong! US cops bust driver using carpool lane with fake skeleton passenger

An Arizona man dressed up a fake skeleton in the back seat to fool the traffic cops, but didn't do a very convincing job.

Meet the inspirational creative duo behind 'Tonic Design'

Meet the inspirational creative duo behind 'Tonic Design'

Greg Gamble and Philippe van der Merwe join Refiloe Mpakanyane in studio.

Fitness was a career that chose me - 'Queen Fitnass'

Fitness was a career that chose me - 'Queen Fitnass'

Mapule Ndhlovu opens up about her life journey and how exercise changed not only her body, but her mindset for the better.

EFF issues one-line apology to journos after court order

EFF issues one-line apology to journos after court order

Anton Harber and Thandeka Gqubule won their defamation case over Mbuyiseni Ndlozi's party statement implying links to Stratcom.

Ugandan climate activist accuses media of racism after Davos photo crop

Ugandan climate activist accuses media of racism after Davos photo crop

WEF youth climate delegate Vanessa Nakate was cropped out of a group pic with her white peers, also featuring Greta Thunberg.

Letting go of your child who's headed for university and independence

Letting go of your child who's headed for university and independence

Nikki Bush has valuable tips on preparing not only your school-leaver but yourself for the journey into adulthood ahead.

Right to Sight pleads for more donations to conduct cataract surgeries

Right to Sight pleads for more donations to conduct cataract surgeries

Right to Sight trustee Dr Matt Young says they get donations at the most time but now need big sponsors.

Remains of Cato Manor 9 returned on anniversary of their hanging

Remains of Cato Manor 9 returned on anniversary of their hanging

The Cato Manor 9 were hanged in 1961 by the apartheid after taking part in an uprising on 24 January 1960.

Zakes Bantwini opens up about his latest single 'Amanga'

Zakes Bantwini opens up about his latest single 'Amanga'

The musician says he never writes songs about his personal life but this latest single is too personal for him.