While the Minister of Public Enterprises, Pravin Gordhan, has called for a review of the SAA flight route changes, an economist has spoken out in defence of the business rescue plan.
“The decision to rationalise the current routes makes economic sense and will help the national carrier achieve sustainability far more quickly,” said economist at the Efficient Group, Francois Stofberg.
Over the weekend, the joint business rescue practitioners (BRPs) – Les Matuson and Siviwe Dongwana also defended their decisions, despite widespread opposition to the plans by President Cyril Ramaphosa, the relevant unions, the various provincial governments, the Department of Public Enterprises and the South African Communist Party.
They pointed out that the actions were aimed at improving SAA’s balance sheet, which is intended to create a platform for a strong and sustainable airline and so ensure that the company is more attractive for potential strategic equity partners.
“The decisions were taken in the best interests of SAA. They are intended to make the airline commercially and operationally sustainable, free from the requirement of future funding from the Government post the implementation of the restructure,” commented the BRPs.
