File: Government has allocated R10.5-billion to finalise SAA's business rescue plan. AFP/Michele Spatari
JOHANNESBURG - The Public Enterprises Department is defending government's bailout of embattled SAA.
Government has allocated R10.5-billion to finalise the airline’s business rescue plan.
Opposition parties, especially the Democratic Alliance, have criticised the move but the department says it's the only way to create a viable and sustainable national carrier.
It says it will be partnering with the private sector to form the new airline in the first half of next year.
Briefing Parliament’s finance committees, Finance Minister Tito Mboweni said the money isn't a capital injection to help start a new airline, as suggested.
He said the money is only intended to meet the obligations of business rescue practitioners.