Billions and billions have been thrown at The South African Airways (SAA), but the airline don’t have much to show for it. It’s hard to recall a time when the limpest of all our state-owned entities was successful on its own two feet. It has a history of relying on fiscal interventions, needing contributions from both private firms and the taxpayer just to stay airborne. Over the last 20 years, their borrowing has been obscene, merely a few days ago the board has requested yet another additional R4 billion to stay afloat this financial year.
According to a SAA spokesperson the company requested the R4 billion bailout as it has been operating at a loss since 2011. The entity needs has approximately R450 million a month to keep operations running. The airline’s generated revenue of R30.4bn in 2016-17 while operating costs amounted to R30.9bn. Finance costs totalled R835m and the operating loss was R533m. The losses have continued into
Continue reading…