Calls emerge for shutting down S. Africa's debt-ridden national carrier

Source: Xinhua| 2019-12-04 20:11:49|Editor: xuxin
Video PlayerClose

CAPE TOWN, Dec. 4 (Xinhua) -- Calls emerged on Wednesday for shutting down debt-ridden South African Airways (SAA), the national flag carrier haunted by poor management.

The most patriotic thing South Africans can do is to help shut down SAA, said Geordin Hill-Lewis, Shadow Finance Minister of the opposition Democratic Alliance (DA).

"SAA must be placed into business rescue to prepare for break up and sale as soon as possible," Hill-Lewis said during a parliamentary debate on the 2019 Medium Term Budget Policy.

The government reportedly is considering to extend another bailout to cash-strapped SAA. In addition, Minister of Public Enterprises, Pravin Gordhan last week called on all South Africans to support SAA.

It is the "collective responsibility as South Africans to support SAA in its efforts to restore sales confidence among its customer base and rebuild revenues in the shortest possible time," the minister said.

The national flag carrier is still reeling under lingering effect of a week-long strike that paralyzed SAA operations late last month.

SAA has relied on government bailouts for continued operation mainly due to poor management. Over the past 13 years, the airline has incurred over 28 billion rand (about 1.9 billion U.S. dollars) in cumulative losses.

The government has allocated 20 billion rand to bail out the airline in recent years.

"Not one further cent of public money, or a guarantee backed by public money, should be spent on SAA," Hill-Lewis said.

The public could force SAA into closure in a matter of days, by simply refusing to fly on it, so that it can be wound up and sold off, he said.

TOP STORIES
EDITOR’S CHOICE
MOST VIEWED
EXPLORE XINHUANET
010020070750000000000000011100001386056551