Saturday, August 15, 2009

Calls to Privatize South African Airways

Officials are calling for the privatization of South African Airways, which is funded by the national government. Leaders from the Democratic Alliance are pushing for privatization in an effort to reduce costs to the state and improve efficiency.

The official opposition on Tuesday charged that the monopoly the state-owned airlines held was "not healthy" for private sector competition and was costing the state too much.

The government in 2008 bailed out SAA to the tune of R1,6-billion, and the airline company told Parliament in June that it might need another injection of R1,5bn in 2009.

SAA 'costing state too much'
The Star
August 5, 2009