Finance Minister Tito Mboweni has defended his decision to throw SAA a R10.5-billion lifeline. He has insisted the R10.5-billion allocated to SAA in the Medium-Term Budget Policy Statement is not a bailout because the funds will bankroll the airline's business rescue process. Editor of SA Flyer, Guy Leitch discusses this with eNCA's Jeremy Maggs
JOHANNESBURG - Editor of trade publication SA Flyer Guy Leitch said the R10.5-billion additional funds allocated to SAA are an unrealistic stop-gap measure.
Leitch commented on the Medium-Term Budget Policy Statement announcement made by Finance Minister Tito Mboweni on Wednesday.
Mboweni has insisted the R10.5-billion allocated to SAA is not a bailout because the funds will bankroll the airline's business rescue process.
Leitch said, "it is just another bailout. If it were a reversion back to the original notion of an SAA version 2.0, as it was called, where there'd be a whole new zero-based budgeting, a whole new airline, then I'd think one could argue it was a recapitalisation or a restart, not a bailout.
"This is very much a bailout."