SAA strike is merely a symptom of a deeper crisis

26 April 2017

We welcome the court interdict putting an end to the strike by cabin crew employed at South African Airways.

However, today’s strike, which has caused the cancellation of 32 flights, and has left thousands of passengers stranded at airports throughout the country, is a symptom of a much deeper crisis at South African Airways.

The fact is that Dudu Myeni, who behaves less like a chairperson, and more like a “corporate warlord”, has run the national airline into the ground, and bankrupted South African Airways.

A staggering loss of R4.5 billion is projected for 2016/17, which adds to the R1.5 billion loss in 2015/16 and R5.6 billion loss in 2014/15.

A total of R19.1 billion worth of government guarantees have apparently already been exhausted, which means that South African Airways will likely need a further bailout long before the end of the 12 month “going concern” period claimed by the national airlines directors and verified by external auditors in 2016.

The fact is that South African Airways is now in a crisis which effects the sovereign credit rating of South Africa.

I have, therefore, written to the Chairperson of the Standing Committee on Finance, Yunus Carrim, requesting him to schedule an urgent meeting with South African Airways on 04 or 05 May 2017 in Parliament.

We cannot sit back and allow things to continue like this; we have to step in and stop the rot at South African Airways.

Issued by Alf Lees, DA Shadow Deputy Minister of Finance, 26 April 2017