The Department of Public Enterprises is considering the possibility of introducing a strategic equity partner for South African Airways, says the Parliamentary Communication Services.
Officials from the Department told the Standing and Select Committees on Appropriations that, despite previous bail-outs for SAA, including the recent R5 billion, the airline would still be insolvent and that the Department needed to find other ways of improving the airline’s balance sheet.
SAA said it estimated that it would be profitable by 2021 and would incur financial loses of R5,2 billion and R1,9 billion for the 2018/19 and 2019/20 financial years respectively.
On Wednesday, the committees gathered for briefings from National Treasury on the Adjustments Appropriations Bill and the Special Appropriation Bill of R5 billion, which is part of the SAA bailout intervention. “Since Treasury officials were not ready to address these questions, the meeting instructed officials to provide the committees with a comprehensive brief on Friday,” the Parliamentary Communication Services said.
The allocation of R1,25bn to South African Express, as stipulated in the 2018 Adjustments Appropriation Bill, was also brought into question at the meeting. National Treasury was asked whether this allocation was a loan or a buy-in of shares, how the amount would be paid, and whether an assessment had been made before the allocations were done.
