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.
More Stories
I want to serve South Africans – Mkhwebane
SPCA Calls For Responsible Pet Care
Ramaphosa Blames Historical Issues At Eskom
Lindiwe Sisulu Disputes ANC Top 6 Nominations
Ramaphosa Says Waluś Parole Judgment Is Disappointing
Women Bullied And Abused At Sea
Russia Pounds Ukrainian Power Grid With New Airstrikes
Mayor Phalatse Faces No-Confidence Motion
Zim President Mnangagwa Calls For Political Tolerance
Violent Crimes Rise alarmingly In SA
Correctional Services To Appeal Zuma Judgment
Gordhan Slams ‘DA Grandstanding’