Funeral or revival? Behind the debate on SAA’s future
The cost of closing down the national carrier is far less than claimed
How much will it cost to close down SAA? Is it R11bn, R47bn or R60bn? The DA has taken issue with the claim by deputy finance minister Mondli Gungubele that it would cost R60bn to close SAA. Gungubele made the comments in parliament six months ago to justify further bailouts for the airline. He said the R60bn would be three times the funding — R21.7bn — SAA has asked from the Treasury for a turnaround plan over three years. Whether it costs more to budget for "the funeral" or "the recovery" of state-owned enterprises (SOEs) is a critical debate in political circles as the government struggles to resurrect companies that have been damaged by mismanagement and looting. If you are already a subscriber, please click on the following link to go to the full article: Shall it be funeral or revival for SAA? If you would like to subscribe to BusinessLIVE to read the full story, please click here.
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