FINQUESTION OF THE WEEK
Should the South African Government continue to bank- roll ailing national carrier, South African Airways?
IN ANY commercial sense, SAA would probably have been sent to the wall long ago. However, Government regards it as a strategic asset and continues to protect it. This transforms any position to support it or not from being one of pure positive economics to one of pure political choice.
TONY TWINE Econometrix economist
SAA management has no real incentive to resolve SAA’s operating problems if it knows the State will always bail them out. State subsidies also represent a dubious investment for SA taxpayers, who receive a poor return on their investment in terms of improved service, efficiency or financial health of the national airline.”
PAUL ZILLE Aviation expert
WE are now grown up enough as an economy to rely more on private-sector airlines such as Comair and 1Time. One would love to see more of an open-skies policy rather than spending R4bn to save one company. The R4bn could be better spent on creating more jobs.
MIKE SCHÜSSLER T-Sec economist
THE airline business is an exceptionally difficult industry. Across the world many international airlines have therefore received capital injections to recapitalise and restructure their businesses. Indeed, there are probably very few airlines in the world that
other.” have not received state support at some stage or
LITHA MCWABENI Acting directorgeneral, Department of Public Enterprises