Myeni's SAA deal could have cost SA billions - economist
Cape Town - South African Airways (SAA) could have cost the country an extra few billion rand if the Airbus deal was changed again, Mike Schussler of Economists.co.za told Fin24 on Thursday.
"As SAA already has government guarantees of R14.5bn and it probably needs at least another R4.5bn to stay afloat, that means that we as the tax payers will have to find about R19bn if SAA cannot pay or if SAA is closed," explained Schussler.
South African Airways (SAA) chairperson Dudu Myeni wanted to reconfigure the airline’s Airbus swap deal, which was approved by then Finance Minister Nhlanhla Nene in July this year.
In Schussler's view, the deal proposed by Myeni and the SAA board would have probably pushed those government guarantees of SAA to kick in if Airbus had decided they wanted the money rather than change things again.
"As SAA is making losses still, the company cannot pay the Airbus group and that would result in SAA having to pay now. Government would probably have had to fork out actual money (our tax money) to cover debts at banks and other lending institutions that SAA has," said Schussler.