Publications
Partners
Cape Town - Minister of Public Enterprises Malusi Gigaba said the future model for embattled state-owned carrier South African Airways (SAA) does not include private partnerships.
"We've tried the PPP route in the past with Swissair who owned a part of the airline. That did not work out well and SAA ended up being fully state owned again."
He indicated that government is still considering its options as to recapitalising the airline.
The airline has just completed a comprehensive turnaround strategy that will now be implemented.
Gigaba was appearing before parliament's standing committee on public accounts (Scopa), where SAA's 2012 annual statements were discussed.
The airline reported a loss of R1.3bn for the period to March 31 2012.
SAA chief financial officer Wolf Meyer said the high fuel cost has wreaked havoc on the airline's finances.
"The increased cost in fuel alone last year was R2.3bn. Around 35% of SAA cost is this fuel issue."
SAA acting CEO Nico Bezuidenhout said the airline's current long distance fleet of primarily Airbus A340 aircraft is a large catalyst for this loss.
"These four-engine aircraft were bought in 1999, when oil was $20 per barrel. This (the price) is $120 per barrel today. No one could have foreseen that."
- Fin24
*Follow James-Brent Styan on Twitter at @jamesstyan.
"We've tried the PPP route in the past with Swissair who owned a part of the airline. That did not work out well and SAA ended up being fully state owned again."
He indicated that government is still considering its options as to recapitalising the airline.
The airline has just completed a comprehensive turnaround strategy that will now be implemented.
Gigaba was appearing before parliament's standing committee on public accounts (Scopa), where SAA's 2012 annual statements were discussed.
The airline reported a loss of R1.3bn for the period to March 31 2012.
SAA chief financial officer Wolf Meyer said the high fuel cost has wreaked havoc on the airline's finances.
"The increased cost in fuel alone last year was R2.3bn. Around 35% of SAA cost is this fuel issue."
SAA acting CEO Nico Bezuidenhout said the airline's current long distance fleet of primarily Airbus A340 aircraft is a large catalyst for this loss.
"These four-engine aircraft were bought in 1999, when oil was $20 per barrel. This (the price) is $120 per barrel today. No one could have foreseen that."
- Fin24
*Follow James-Brent Styan on Twitter at @jamesstyan.
