Money Bills pave the way for SAA funding, but will it be enough to save the airline?
Updated | By Christelle du Toit
Roodt says low-cost carrier Mango might survive or be sold off, "But SAA as an entity simply will not survive, they have been run into the ground."
The signing of a number of so-called Money Bills this week by President Cyril Ramaphosa paves the way for the embattled state-owned airline, SAA to receive it's much needed R2 billion post-commencement financing (CFP).
This after the airline was placed in business rescue and government committed to paying over rate funds a part of that process.
However, economist Davie Roodt explains that government has been unable to do so until this week.
ALSO READ: Government still 'engaging' on R2bn needed to keep SAA afloat
"Politicians can not just spend money willy-nilly - there is a certain process that thas to be followed and there is certain legislation that has to be promulgated and has to be signed by the President before it can become effective, and that's the so-called Money Bills," says Roodt.
"What we've just seen is some of these Money Bills that have been signed and certain expenses can in fact now be done legally."
However, Roodt is sceptical whether the billions that are now set to make their way to the SA business rescue practitioners will be enough to save the airline.
"I'm pretty sure that SAA will not survive in the way that we know South Africa Airways. I think chances are good that at least parts of SAA will be liquidated," says Roodt.
Roodt says low-cost carrier Mango might survive or be sold off, "But SAA as an entity simply will not survive, they have been run into the ground."
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