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If South African Airways can find a buyer, The Free Market Foundation (FMF) estimated that it could cost a total of R18.8 billion, of which the state would have to cough up R11 billion. This is if SAA’s R7.8 billion in held assets were used to pay creditors.

“The FMF’s position is that SAA should be closed down or sold off to become a new entity with foreign and local private ownership,” said the lobby group’s spokesperson Jane Baccleone.

“Elsewhere, the current debate is whether it would cost more to bail out SAA or close it down.”

Finance Minister Tito Mboweni is on record as saying no one would buy SAA because they would be taking on an immediate debt of R22 billion, Baccleone pointed out.

Addressing Parliament while making the case for another bailout for the airline, Deputy Finance Minister Mondli Gungubele said that it would cost R60 billion to close down SAA.

“Since then, the figure of R60 billion cost to close down SAA has been bandied about in the media.

“It is difficult to see where that comes from other than a scare tactic to stop discussion about closing SAA and justify bailouts”, Baccleone said.

She said this was highly unlikely.

SAA has said it needs R21.7 billion to break even over three years. R 9.2 billion in debt R 5 billion in operating costs 2018-19

R 5 billion in operating costs 2019-20

R 2.5 billion in operating costs 2020-21

= R 21.7 billion – Simnikiwe Hlatshaneni