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Sunday Independent reports that a merger of SA Airways (SAA) with Mango and SA Express was still on the cards, Minister in the Presidency Jackson Mthembu advised last week. He said the cabinet was discussing it.
The issue was first raised a few years ago after it emerged that SAA was losing billions of rands and a merger was suggested to make the three airlines financially sustainable. The national carrier has in the past few years relied on billions on rands in government bailouts. Mthembu indicated: “Cabinet is looking at various options. The cabinet did reflect on suggestions, but at the moment it’s work in progress. But very soon the relevant minister will speak to the nation.” SAA’s finances have not yet been tabled before Parliament. The airline owes creditors billions of rands and said last week it would require more than R2 billion to stay in business. It is one of the state-owned entities (SOES) that have been struggling financially, with National Treasury forced to come to their rescue. The bailouts are sitting at more than R570bn, with Eskom the biggest risk to the economy. Other than SAA, SA Express has also been in financial trouble and has required bailouts.
- Read the original of the above report by Siyabonga Mkhwanazi on page 9 of The Sunday Independent of 22 September 2019
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