SAA won’t be sold, says Ramaphosa

President Cyril Ramaphosa says the government was exploring the possibility of finding a strategic equity partner for South African Airways (SAA) so as to avoid closing down or selling the national carrier.

The president said instead of closing down the state-owned airline, they needed to stabilise it and one of the ways was to get a “well steeled” strategic partner.

He responded in the National Assembly yesterday to Democratic Alliance leader Mmusi Maimane, who said the loss-making SAA poised a fiscal risk to the country’s economy.

He asked Ramaphosa to explain his exact policy stance in response to reports that the government intended to close down the airline. This after Finance Minister Tito Mboweni told investors in New York recently that he believed that SAA must be sold or shut down.

Later, the ANC national executive committee issued a statement rejecting Mboweni’s statement, stating that SAA will not be closed down or sold.

Ramaphosa reiterated this, saying there was no plan to close it.

“SAA is laden with debt. It is an enterprise operating in a very difficult sector.

“If you sell SAA you won’t get value for it due to the debt. If the debt was paid immediately, it would impact on the finances of other state-owned enterprises,” Ramaphosa said.

He said government needs to stabilise the airline by getting a strategic partner as they moved forward.

“Rather than shutting it down, this is one of the options we are looking at,” he said.