When Finance Minister Malusi Gigaba presents his medium-term budget in Parliament next week, one of the items that is likely to get plenty of airtime is the state of the state-owned airline. There’s a certain irony to that. The budget is a key macroeconomic policy tool, which is crucial for the fortunes of the economy as a whole. But in itself, South African Airways (SAA) is all but immaterial to SA’s economic fortunes. The airline operates in a competitive market and arguably plays no more of a developmental or strategic role in SA’s economy than any of its more successful competitors. It doesn’t boost foreign tourism or business travel to SA’s shores by offering especially competitive prices on long-haul flights — indeed, it may be a barrier to encouraging more airlines to fly to SA. The state-owned airline’s role as a hub airline for the rest of Africa is increasingly being overtaken by the big Gulf airlines such as Emirates, and its domestic market share could easily be absorbed...
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.