Airline ‘loses’ extra R1bn in a week

OPPOSITION parties in Parliament are shocked that South African Airways’ loss is more than R1 billion greater than they had been led to believe.

In an interim report tabled in Parliament last week SAA said it posted a loss of R4.67 billion during the 2014/15 financial year.

However, when they came to present the final report in the national legislature yesterday the airline said it had in fact suffered a loss of R5.6bn in the year under review.

Alf Lees of the DA said it seemed to support suggestions that SAA was technically bankrupt.

EFF deputy leader Floyd Shivambu said there was concern that the airline could be liquidated.

The EFF wanted urgent intervention by the government before that happened.

Natasha Mazzone, of the DA, said it was clear that SAA needed an equity partner.

“Where do we stand at the moment with an equity partner? There are many companies in the world that have been turned around because of equity partners. SAA reads like a soap opera. It’s not a good soap opera, it’s a scary soap opera,” she said.

African Christian Democratic Party MP Steve Swart said they were shocked by the extent of the losses at SAA.

These were huge losses in addition to the billions poured into the airline by the government in loan guarantees.

Deputy Minister of Finance Mcebisi Jonas said SAA was getting back on its feet.

The new board that had been put in place would turn things around.

Shivambu said this was the indication given by Finance Minister Pravin Gordhan last week and they hoped the board would fulfil its fiduciary duties.

SAA acting chief executive Musa Zwane said they continued to make strides.

The board met on Sunday and approved the financials.

“We are comfortable. As the executives we’ll get the direction we require,” he said.

MPs also insisted to SAA officials and the board that they must try to get somebody with aviation experience on the board.

The impressive list of members of the new board did not include anyone with experience in the aviation industry.

This was needed, they said, to give the new board much-needed strength and expertise so it could improve its performance.