UNITED DEMOCRATIC MOVEMENT

MEDIA RELEASE

 

SAA CRISIS DEEPENS

STATEMENT ISSUED BY CEDRIC FROLICK, MP
UDM SPOKESPERSON FOR PUBLIC ENTERPRISES

The news that Swissair may sell their stake in SAA could not have come at a worse time for the our struggling national airline. It must be seen within the context of a global downturn in the airline industry. The misfortune resulting from the US terror attacks does not absolve SAA management. It cannot be forgotten that the financial status of the airline has been questionable for a considerable period of time. In addition, the Coleman Andrews saga destroyed what little credibility SAA management had.

It is probably only a matter of time before government will be expected to bail out SAA. What sort of impact will this have on the national budget deficit? The UDM is concerned that the proceeds of other restructured parastatals will have to go towards rescuing this parastatal, at the expense of service delivery and the budget deficit.

In all of this we must spare a thought for the long-suffering customers and workers of SAA. There can be no doubt that SAA management and the Minister of Public Enterprises must be held responsible for this crisis.

Enquiries:
Mr Cedric Frolick, MP
UDM Spokesperson for Public Enterprises

Cape Town
02 October 200101