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SAA Too Important To Be Allowed To Fail – Gordhan

Public Enterprises Minister Pravin Gordhan said that South African Airways was far too important and strategic for the economy to be allowed to fail again.

He’s backing the multi-billion rand cash injection for the airline to help with its business rescue plan.

The minister and the national carrier’s business rescue practitioners briefed the Standing Committee on Public Accounts and Public Enterprises officials on Wednesday night.

Gordhan said that SAA still had a role to play in the country’s economy and allocating it R10.5 billion was a better option than liquidation.

He added that a number of industries would be impacted if the airline was not fixed.

Meanwhile Finance Minister Tito Mboweni insisted the R10.5-billion allocation to South African Airways is not a bailout.

“The issue about SAA is a very difficult one, both politically and financially. We’ve sought to approach the matter in a balanced way,” he said.

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