‘SAA won’t collapse…prove naysayers wrong,’ Gordhan tells employees

Minister of Public Enterprises Pravin Gordhan has assured South African Airways (SAA) employees that the airline will not collapse.

In an address to SAA staff on Monday at Airways Park, SAA’s headquarters in Kempton Park, Gordhan told the staff that although the airline had a great future, they would have to work as a collective to prove the naysayers wrong.

Gordhan told around 2,000 staff that he’s confident the airline’s management would steer the national carrier to greater heights after it marked its 90th anniversary last month.

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Raising capital

He said SAA’s executive was already looking at ways to raise capital following last week’s announcement that its private partnership deal with the Takatso Consortium had collapsed, almost three years since it was named the preferred partner.

Public Enterprises spokesperson Ellis Mnyandu said Gordhan told the employees that their ambition is for SAA to make enough profit to pay the government dividends.

“We have rebuilt the airline, and it will make profit that can support the fiscus instead of it looking for bailouts from government.  SAA is here to stay. SAA will grow. SAA will expand. Don’t allow negativity to come near us.

“Minister Gordhan said there must be zero tolerance of corruption at SAA, which celebrated its 90 Anniversary last month. He noted that State Capture had played a significant role in bringing the airline to near collapse in December 2019,” Mnyandu said.

Takatso deal

Last week Gordhan said there were three reasons the government decided to scrap the deal to sell 51% of SAA to the Takatso consortium.

Gordhan said the government needed to ensure a fair value was attached to the sale of the 51% shares; public interest was secured in this fair value; and the airline should be placed in a more sustainable position than it was in 2019.

The minister said SAA was also in a position that is sustainable for the next year to 18 months, and there are other ways financing can be obtained should it be needed.

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