thepoll
Poll: Are Mauritius Dec sales down this year?
Submit
NewsArticle
We’re not selling SAA - President Today's News


Print   Send to a friend

President Cyril Ramaphosa says that selling SAA is not an option, although government is looking to secure a strategic equity partner.

During a parliamentary meeting on Tuesday November 6, Ramaphosa said: “If we say ‘shut down SAA’, we say that the debt that SAA carries becomes payable immediately, but immediate payment has an impact on the debt that is carried by all other state-owned enterprises. That is how you can collapse the fiscus. SAA should be seen as a collective challenge and problem.” He added that the focus should be to stabilise the airline. “One of the options is that we get a strategic equity partner, rather than shut it down.” 

The president’s comments come after finance minister Tito Mboweni told an investor conference in New York last week that the country was “unlikely to sort out the situation” and said his view was that the national carrier should be closed down. Public enterprises minister Pravin Gordhan has indicated that he does not believe the airline should be sold. 

Business Day reports that the airline has been in financial distress since 2011, and has had R18bn in losses since the 2015 fiscal year. In the past two years it received R10bn in bailouts and is still dependant on a R19bn state guarantee to keep afloat. The carrier is seeking a further R22bn in government bailouts to sustain operations over the next three years.


Today's News



comments powered by Disqus
Today'sNews
 latest  previous
Réunion strikes delay flight, cancel bus tours
Strikes on Réunion Island resulted in the delay...
First Car Rental launches self-service car hire
First Car Rental has launched Car Hire...
AF has cancelled tonight’s JNB-CDG flight
Air France has cancelled tonight’s (November 21)...
MSC Virtuosa is open for bookings
MSC Cruises has opened sales to MSC Voyagers Club...
G Adventures receives ChildSafe certification
G Adventures has become ChildSafe certified....
Do you want to be a secret agent?
Do you have a scoop? Are you sitting on...