Public Enterprises Minister Pravin Gordhan has reassured South African Airways employees that the airline is here to stay and that he is confident it will soar to greater heights.
This comes after the government terminated the proposed strategic equity partnership deal with investment consortium Takatso Aviation, after the national carrier was found to have appreciated in value.
The business and the properties were valued at a liquidation asset valuation methodology that amounted to R2.4 billion three years ago.
However, a second business valuation amounted to R1 billion, with a property valuation of R5.5 billion.
This reflected a R3.1 billion net increase in property value, while equity value rose from 0 to R1 billion.
In a message to SAA’s current staff complement of almost 2 000, Gordhan said the airline had a great future ahead but staff would need to work together as a team to silence cynics by helping the carrier seize market opportunities and showcase its best customer service to recapture market share.
“We should be grateful to government for the role it played to avoid liquidation,” Gordhan told SAA staff, who were connected virtually or gathered at Airways Park, SAA’s headquarters in Kempton Park on Friday.
“Our ambition is that SAA will make enough profit to pay the government dividends. We have rebuilt the airline, and it will make a profit that can support the fiscus instead of it looking for bailouts from government.
“SAA is here to stay. SAA will grow. SAA will expand. Don’t allow negativity to come near us.”
Gordhan said the board, executive management and the government were already engaged in efforts to help the airline raise funds to sustain its route expansion plans and optimise the fleet.
He said there must be zero tolerance of corruption at the airline, which celebrated its 90th anniversary last month. He said state capture had played a significant role in bringing the airline to near collapse in December 2019.
“We will have zero tolerance for any corruption that rears its ugly head at SAA. We have a bright future ahead of us. We need to work together. You must work as a team.”
