• Inside Labour

    Away with empty rhetoric and slogans - labour needs to focus on real issues, says Terry Bell.

  • Wrap-up: Davos insights

    Alec Hogg speaks about the top three issues at this year's World Economic Forum.

  • Netflix and SA video

    Much of Netflix's potential impact on SA has already been made, says Arthur Goldstuck.

See More

SAA crucial to economy - CEO

Jun 04 2013 20:13 Sapa


Related Articles

Aviation push 'vital for African growth'

Passenger value key for SAA survival

SAA borrows R1.5bn to stay afloat

SAA won't consider private partnerships

SAA the most prompt airline in the world

SAA 'not yet ready to buy new aircraft'


Johannesburg - SA Airways (SAA) is an important contributor to the country's economy, acting CEO Nico Bezuidenhout said on Tuesday.

SAA continues to answer its mandate regarding national development, Bezuidenhout said in a statement.

"In South Africa alone, the value of SAA extends well beyond its balance sheet, with the airline functioning as a substantial economic enabler."

He said a recent Oxford Economics study found that SAA, SAA Technical, SAA Cargo, the airline Mango, Air Chefs and the SA Travel Centre collectively contributed R3.6bn through direct output to the country's economy.

About R4bn was indirectly contributed through its supply chain, and R1.6bn through spending on employees and respective supply chains.

In addition, there was R12.4bn in benefits through tourism.

Bezuidenhout said the airline's total contribution to the economy was R21.6bn.

"Equal to SAA's contribution to GDP [gross domestic product] is the fact that the group supports 34 000 jobs in South Africa."

He said 11 500 jobs were directly supported by the group, while 16 400 were in the SAA supply chain, and 6300 were supported through spending by the group and its supply chain.

Bezuidenhout said a sound policy framework was a critical factor for a state-owned airline, since it allowed the aviation sector "to optimise its economic contribution".

"Infrastructure development, such as airports, the growth of airlines, air traffic management, and bilateral air service agreements, among others, must be optimised and efficiencies improved to facilitate the growth of a state's aviation sector.

"Increased growth will lead to a far greater catalytic contribution to domestic and continental GDP, job creation, skills development, and tax base growth."

He said other examples of "whole of state" aviation policies had succeeded in Singapore, the United Arab Emirates and Ethiopia.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

saa  |  nico bezuidenhout  |  economy  |  aviation



Latest Articles

Fun and inexpensive things to do with the kids Read More...
8 simple ways to earn extra money
6 motivational tips to help you save this year Read More...
Invest for Income

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...