Green shoots already showing at SAA, says Mondli Gungubele
The deputy finance minister said most of the airline’s routes were now profitable — but all opposition parties except the EFF still vehemently opposed the R5bn bailout
Green shoots are beginning to show at the national airline SAA with all but one domestic and one regional route now already profitable, deputy finance minister Mondli Gungubele said in parliament on Wednesday evening. He was speaking in support of a R5bn bailout for the struggling state-owned airline, a move strongly opposed by most opposition parties. The bailout, which is provided for in the Special Appropriation Bill, was finally adopted by the National Assembly. An allocation of R1,249m has also been made to the other loss-making state-owned airline SA Express. The new board and management of SAA, he told MPs, had established a firm basis for a sustainable turnaround of the airline and initial positive results were already emerging. The only domestic route that was not profitable at gross profit margin level was the Port Elizabeth route. “Now that the margins have returned, SAA is increasing frequencies in the domestic market — Joburg to East London and the Johannesburg to Cape ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.