Johannesburg - The aviation industry has greeted new Public Enterprises Minister Brigitte Mabandla with a simple request - "no more handouts to South African Airways (SAA)".
Mabandla, formerly justice and constitutional affairs minister, was this week put in charge of public enterprises by newly elected president Kgalema Motlanthe.
Public enterprises is the government department with overall responsibility for the loss-making national carrier and several other inefficient state-owned enterprises.
Mabandla replaces Alec Erwin, a confidant of axed president Thabo Mbeki.
"We wish the new minister everything of the best in her new position. This will be her ultimate test," said Rodney James, the chief executive of budget airliner 1time.
"Most of all we wish for only two things: No more handouts to SAA and open skies into Africa.
"These requests will have a huge positive effect on airlines and air travel in South Africa and the region," said James.
Comair, owner of low-cost carrier kulula.com and licensed domestic operator of British Airways, also felt public enterprises would be Mabandla's toughest test.
'Give taxpayers a break'
"Her appointment did not come a moment too soon. The previous minister was a disaster and his interventions hurt the industry, which is now much poorer after the exit of Nationwide," said Comair joint chief executive Gideon Novick.
"The new minister must just give taxpayers a break and instead give SAA to people who know how to run an airline.
"The state has not realised any return on the billions of rand pumped into SAA over the years. These subsidies create distortions in the market," said Novick.
SAA received R11.2bn in subsidies and bailouts in the time that Erwin was in charge. The money covered the substantial losses incurred as a result of foreign exchange hedging, impairment of aircraft assets and retrenchments.
The past financial year SAA returned another disastrous set of results and the airline has once again asked for recapitalisation.
"It's time to say: No, we have more pressing concerns in our country that desperately need funding, including education, health, safety and security," Novick said.
James and Novick may be disappointed again. Mabandla will only have been in the job six to seven months before South Africa goes to the polls, a period that may not be enough for her to even get to know all the staff in her department.
She is also responsible for Denel, the armaments maker that has been broken into smaller entities, some of which have been sold off.
She will also drive government efforts to bring down the cost of broadband through Infraco, the latest addition to her portfolio.
Will have to learn fast
Other enterprises reporting to her include rail, ports and pipeline utility, Transnet; Safcol, the forestry assets manager; diamond miner Alexkor; and Eskom and the Pebble-Bed Modular Reactor.
Mabandla will have to learn fast and in Portia Molefe, who heads the bureaucracy, she has a capable tutor. She is the only new incumbent to the departments in the economics cluster.
As expected, Finance Minister Trevor Manuel retained his job. Mandisi Mpahlwa stays at trade and industry and Buyelwa Sonjica remains at minerals and energy.
Meanwhile, South Africa's official body for organised business, Business Unity South Africa (Busa) has extended its congratulations to the ANC for the appointment of Kgalema Motlanthe, as president of the republic.
Busa believes the appointment will go a long way in cementing investor confidence in South Africa at a time the world is faced with major economic challenges that require unwavering government leadership, said chief executive Jerry Vilakazi.
"President Motlanthe is more than able to lead South Africa through this transitional phase. His immediate challenge is to ensure that he unites all South Africans towards a common vision for economic growth, safety and employment.
This will require decisive steps to ensure that the public service continues to fulfil its constitutional mandate of serving the people of the country with diligence.
"Busa welcomes the swift move by the new president to appoint his cabinet, which is balanced between the need for continuity and new leadership.
"Retaining the old and tested ministers combined with new ones, will confirm to investors that the new leadership is committed to building on the solid successes of the past 14 years, while seeking to improve in areas of weaknesses by bringing in new leaders," he said.
- City Press