Gordhan on SAA: Bailouts have become a 'moral hazard'

Gordhan believes the time has come for everybody at SAA to make sacrifices in order to save the state-owned airline and jobs.

He says government has provide the embattled airline with more than R20.5 billion in financial support and "the pattern of bailouts has become a moral hazard”.

The bailouts will not be heading to SAA’s wage bill but to keep airplanes in the air and service its debt.

Gordhan held a meeting with the striking unions, the National Union of Metalworkers of South Africa (Numsa) and the South African Cabin Crew Association (SACCA) on Tuesday.

ALSO READ: South African Airways and unions resume strike talks

“It needs to be borne in mind that government is not in a position to make money available to the airline,” the minister said in a statement.

Wage negotiations have deadlock as no common ground has been found over an 8% salary increase sought by the workers.

Talks under the auspices of the CCMA are set to resume on Monday.

“Unfortunately, the strike is not helping as it exacerbates the financial crisis and might put the airline in a precipitous position,” Gordhan said.