Slow demise of SAA has been a long time coming - Outa

The Organisation Undoing Tax Abuse (Outa) says South Africa needs a vibrant airline industry with viable players contributing to the market.

The organisation has made the remarks amid news of South African Airways group CEO Vuyani Jarana.

READ: SAA CEO Vuyani Jarana 'resigns' - reports

Outa's executive director Heinrich Volmink says the airline's demise has been a long time coming.

A country of our size and our economic potential needs a vibrant airline industry, what SAA has shown us is that it has failed and it has failed because it has shown a continual drain on the fiscus. It has cost us R 5 billion a year in bailouts over the last two to three years.

Heinrich Volmink, Executive director - Outa

Volmink says Jarana's resignation underscores the problems that have been seen in the sate owned enterprise.

We should appreciate the fact that he inherited an almost impossible situation. He tried to turn it around. I think that the key things he sited was that there was a blurring of lines of accountability between himself, the political players and the board making it untenable for him to continue.

Heinrich Volmink, Executive director - Outa

I do think that from the very beginning it was a very impossible task.

Heinrich Volmink, Executive director - Outa

He came from a communications background, so one could argue that although he certainly had the competency, the experience perhaps did not match with the task but even if he had that arguably it would still be the same outcome.

Heinrich Volmink, Executive director - Outa

Click on the link below to hear more from Volmink....


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