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The government has proposed starting a new airline with public and private owners that will employ the majority of SAA’s nearly 5,000 employees.
JOHANNESBURG – The public business department said some jobs will be lost when a new airline is created to replace state-owned South Africa Airways (SAA).
The government has proposed starting a new airline with public and private owners that will employ the majority of SAA’s nearly 5,000 employees.
However, aviation experts doubt that a new airline will succeed where SAA has failed.
The government said it is engaging with the private sector to raise capital and attract the best in the business to run the new company.
One of the biggest challenges is accommodating the 4,708 workers currently hired for SAA.
Commercial rescue professionals at the national airline have proposed that they be decommissioned and given severance packages for the funds generated through the sale of assets.
Acting CEO of public companies, Kgothatso Tlhakudi, said most workers will have jobs.
Aviation expert Phuthego Mojapele said the government will have to finance this.
The department said work on establishing the new airline will be done soon.
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