‘Rome Is Burning… We Don’t Have The Time Or Luxury To Consider Industrial Action’ – SAA Board Member

Riyaz Patel

A South African Airways (SAA) board member said Wednesday the embattled national carrier needs a government guarantee to help it secure bank funding or risk being liquidated.

Martin Kingston said SAA’s dire financial situation meant it was in no position to up its wage offer to striking unions, and the industrial action was only making the state-owned airline’s position more perilous.

Unless we are able to secure guarantees from national treasury – and we’re in discussions with them as you and I speak – then the board will have to recommend to government that actually it be placed in liquidation,” he said.

As the crippling strike entered its sixth day, the Department of Public Enterprises underlined Wednesday there was no more money in public coffers for SAA, with multiple bailouts for the airline and other ailing state-run firms becoming a “moral hazard.”