It’s time for National Government to consider partial or full privatisation of SAA
18 November 2019
The time has come for National Government to seriously consider South African Airways’ (SAA) future as unions have now threatened to extend their industrial action to include the entire aviation industry. If these intentions materialize, Government will sit with an even bigger problem on its hands than SAA losing an estimated R52 million per day, as it can potentially put our entire already ailing economy under further distress.
The Democratic Alliance (DA) is of the strong and considered view that the airline be placed under business rescue, in order to mitigate any further loss of revenue and to ensure that the entity is a going concern. If not business rescue, the only viable option would be the partial or full privatisation of this entity.
NUMSA and its affiliates are out of touch with the genuine concerns of the workers they represent and do not care about the sorry state of our economy.
Bringing the entire aviation industry to a standstill will have devastating consequences on the tourism sector in particular. This time of the year, tourists flock to the country bringing much-needed capital and economic activity. Furthermore, reports indicate that unions are demanding an 8% wage increase from the cash-strapped SAA. If the airline cannot even afford to fund its daily operations, how can NUMSA ever expect SAA to afford an 8% wage increase?