SAA still in trouble

SAA remains in deep financial trouble, and Deputy Finance Minister Mondli Gungubele says the troubled national carrier will only break even in three years time.

Gungubele’s comments came after SAA chief executive Vuyani Jarana insisted in Parliament yesterday that they were implementing a number of measures to rescue the airline.

Jarana said they needed money to cover their costs and to get to the point of breaking even in 2021.

SAA has suffered financial losses of R20 billion over the past six years.

Gungubele said the issue was before the government.

He said that SAA would need R21bn to break even.

Gungubele said R15bn of this had already been paid.

He added that they were looking at a range of measures that would make state-owned enterprises (SOEs) self-sufficient.

Jarana said he was committed to the financial sustainability of the airline, adding that the sooner they assured the market about the future of SAA, the better.

“The sooner we settle the issue of the funding of SAA, the better for the turnaround strategy. If we don’t, it will undermine the market,” said Jarana.

Gungubele said the matter of whether SAA should go back to the Department of Public Enterprises was under discussion.

He said this would not be finalised at present.

The committee said it had resolved that the national carrier must be returned to Public Enterprises.

Former president Jacob Zuma removed SAA from Public Enterprises a few years ago to the National Treasury because of the financial challenges it was facing.