Public funding for SAA undermines government credibility and endangers State finances

The government’s undertaking to reprioritise State funding in order to finance State-owned national flag carrier South African Airways (SAA) and so prevent its liquidation represented a defeat for the National Treasury (NT) and undermined the credibility of the government, Intellidex analyst Peter Attard Montalto argued on Tuesday. The government’s decision has completely contradicted previous assurances by the National Treasury that no more State funds would be allocated to the airline. While …