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The price of oil and the poor performance of SA Technical, SAA's maintenance arm, had hurt other international routes. This had an impact on aircraft availability, planning integrity and costs.
If the price of oil remains at its current lowest level, it would be possible, Gungubele said, to make up for the losses suffered in the first half of the year on the international market. SAA now had the ideal flight availability for its international flights.
"The benefits of purchasing come to life. As we speak, 400 million rupees a year have been achieved and the goal is to target an economy of R2.8 billion euros over the next three years, "said Gungubele.
However, Alf Lees, deputy finance spokesman for the DA, said the SAA had, due to political interference, poor management and widespread corruption, consumes 31, 4 billion rubles in "bailouts" that could have been used to stimulate the economy and create jobs. In the six months prior to the end of September 2018, SAA had already recorded a loss of R 2.2 billion and was forecasting a loss of R 5.3 billion for the full year. 2018/19.
"Now we are told that SAA will be forced into liquidation if it does not receive a further $ 3.5 billion by the end of March 2019," said Lees.
"At the moment, SAA is insolvent and is negotiating recklessly. Under the current circumstances, the board of directors and the management will not be able to leave any chance for SAA to return to profitability. They spend all their time going from one funding crisis to another with the false hope that the poor South Africans will be happy to provide, as a rich uncle, the SAA of a value of 21.7 billion rand that they should have (over the next three years). in order to possibly be able, without any guarantee given, to bring back SAA to the profitability. "
IFP deputy Mkhuleko Hlengwa said IFP could not support another bailout, as SAA has yet to report its financial results for 2017 / / 18. "This bailout is on the backs of the poor," he said. The only solution is to sell SAA.
UDM deputy, Nqabayomzi Kwankwa, said that the state could not continue to inject billions into state-owned enterprises that waste it and waste it with impunity. The UDM could not support the credit of 5 billion rand for the SAA because he did not think that he would spend the money properly.
Freedom Front Plus MP Wouter Wessels said that overthrowing state-owned companies that were not operating was a "madness". He supported privatization.
The EFF deputy, Thembinkosi Rawula, backed the 5 billion rand rescue plan aimed at stabilizing the ASA, claiming that it was to remain in the hands of the state. He accused Gordhan of deliberately removing public companies – which Rawula considered essential for economic development – in order to be able to privatize them and "sell them to his friends and masters, the Ruperts, the Oppenheimers and others." 39; others.
"That's why he (Gordhan) has begun a process of purging the boards of black state-owned companies without following the proper process and replacing them with whites from the private sector who are facilitating the bankruptcy of the companies they were responsible for managing. . SAA must be saved, "Rawula said.
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