The Democratic Alliance believes that South African Airways is of no value to the tax-payer if government cannot succeed in operating it profitably in a sustainable manner.
With the cost-cutting plans currently mooted seeming likely only to further damage SAA’s reputation as a full-service airline, it is clear that government has run out of ideas about how to get the once-proud state-owned airline back on the road to financial recovery.
In light of this and of various other issues that have lead to the current crisis, the DA believes that it is high time that a thorough cost-benefit analysis was done to see whether it would not be better to privatise SAA so that it can be run profitably by the profit sector.
The DA has welcomed the planned restructuring of SAA into six separate standalone divisions, but only insofar as it will facilitate the privatisation of the national carrier.
In recent months tax-payers have not only had to learn of the flagrant disregard shown for the seriousness of the situation at the state-owned airline by its board of directors – many of whom hold a multitude of directorships with other companies – but have also had to swallow the bitter pill of providing a massive R1.3bn guarantee to keep the national carrier afloat.
The DA will ensure that the bridging capital obtained by SAA on the basis of the latest guarantee provided by the state is spent in accordance with the conditions on which it was made available, and will continue to apply pressure on government to privatise the airline as soon as possible.
Source: MyPE Political Blog
XML Feeds
