THEBE MABANGA
GOVERNMENT’s commitment to fund the resuscitation of South African Airways (SAA) must clear a number of hurdles and presents a conundrum that cannot be resolved without the support by commercial funders. This is at a time when public finances are strained.
This week, following a successful vote on the SAA Business Rescue Plan, the Department of Public Enterprises welcomed a commitment from Treasury to source funding for a new airline. Government
is required to provide a letter of support for funding the plan “where it results in a viable and sustainable national flag carrier that provides international, regional and domestic services”.
The department said a letter of support that commits the government “to mobilise funding for the short, medium and long term requirements to create a viable and sustainable national airline” was signed by the Ministers of Finance Tito Mboweni and Public Enterprises Pravin Gordhan on Wednesday,
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
