SAA is simply milking the taxpayer

There can be little doubt South Africa does benefit because SA Airways (SAA) exists. But the costs far exceed the benefits. The airline continually runs at a loss and repeatedly needs to dip into taxpayers’ pockets.

Aviation, in general, creates thousands and thousands of jobs. It enables trade, encourages business and promotes tourism. It allows people to travel to see friends, family and new sights. But all this happens regardless of who owns the airline.

In other words, the benefits SAA creates would still be there regardless of who the owner is.

The problem today is the airline destroys more wealth than it produces. Any business that is losing money, regardless of ownership, is destroying wealth. It is NOT contributing to GDP but taking away from it.

SAA faced a R4.8 billion loss for 2016-17 (and a cumulative loss since 2012 of R15.8 billion). Where does that money come from? It comes from taxpayers. For consumers, the extra taxes government raises to fund SAA leaves them with less to spend on other products.

So, people who would rather buy more food, or perhaps a new taxi, instead, subsidise the air travel of people generally better off than they are. In this case, the ANC redistributes wealth from those who are poor to those who are wealthy.

When consumers have less money to spend, it means job losses. James Peron