It was revealed in Parliament yesterday that South African Airways losses for the past two months amount to R 734 million.
This follows losses of R 4.8 billion in the 2016/17 financial year.
However even more shocking was the fact that:
- Neither SAA nor National Treasury had a plan in place to meet the 30th of June 2017 deadline to deal with R9.0 billion worth of maturing loans.
- SAA has been in discussions with the Public Investment Corporation (PIC) about funding the national airline.
The only logical solution to ensure the sustainability of SAA and its thousands of employees is to file for business rescue and to stabilise the airline before taking it to the market to find private equity investors.
It is also in the public interest that the terms and conditions relating to these maturing loans be made public.
Meanwhile, the South African Cabin Crew Association (SACCA) has said that SAA made irregular payments to 33 companies for tender contracts that were not signed.
This included over R249 million to Dimension Data for global supply chain management, and R266.8 million to KWE (Pty) LTD for supply chain management services.
SACCA President Zazi Nsibanyoni said the airline had refused an allowance increase of R23 million for the 1 300 cabin crew members, which led the staff members to strike leaving the airline to incur a R31 million loss.
“They failed to ensure effective, efficient, economic and transparent use of financial and other resources within their area of responsibility.”