SAA turnaround strategy: How much will it cost?
The South African Airways' (SAA) ninth ‘turnaround strategy' in thirteen years presented in Parliament today does not instil confidence that the public carrier will be stabilised. It appears that the SAA will continue flying around in circles with no end in sight.
During the Portfolio Committee meeting on Public Enterprises today, Minister Malusi Gigaba failed to provide clarity on critical matters related to the ‘turnaround strategy':
- How much it will cost;
- Whether it will result in any job losses;
- Whether the airline is planning on cutting and introducing routes; and
- Whether SA Express, SAA and Mango Airline would be merging?
I will be submitting parliamentary questions to gain clarity on these matters.
The DA is committed to ensuring that SAA provides world class services in order to remain competitive on the global market.
Nine turnaround strategies and R16 billion later the airline continues to yield lower profits than its global competitors.
SAA must be privatised in order to ease the burden on the public purse. South Africa has far more critical service delivery concerns than pouring cash into sustaining a going concern.
Statement issued by Natasha Michael, DA Shadow Minister of Public Enterprises, September 10 2013
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