Public Enterprises defends SAA bailout announcement

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.

READ: SAA gets R10.5-billion government bailout

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.

READ: Numsa 'relieved' at SAA bailout announcement

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.

Source
eNCA