SAA in the news once more
ohannesburg - While South African Airways (SAA) declines to use the "p" word for privatisation, this is in fact happening at the airline, according to economists and unions.
This week SAA issued a tender for parties interested in bidding for stakes in two of SAA's subsidiaries. But SAA spokesperson Vimla Maistry says the airline is planning to retain a majority interest in each of its subsidiaries.
The aim, she says, is to grow the operations and improve them. Currently the SAA Technical division and Voyager are the only units in question. The process of selling a stake in the Technical division will be the gauge for judging the process at other subsidiaries.
Chris Smyth, SAA's acting chief executive, last year said that SAA also wanted sell a stake in Air Chefs - the airline's catering division - as well as SAA Cargo, the freight division.
Kenneth Monnana, the national air transport coordinator for the SA Transport & Allied Workers' Union (Satawu), says his union is opposed to privatisation of any kind.
The union wants SAA to halt the process. It will appeal to the Minister of Public Enterprises, if necessary. If SAA is properly managed there will be no reason to go to the private sector for funding.
Willie van Eeden of the Uasa trade union says privatisation can lead to staff cuts.
Mike Schüssler, an economist at Economists.co.za, says that the move is a good sign that government is becoming more pragmatic with regard to private interests in state companies.
This has become evident in the case of Eskom, he points out, where government is seeking private investors for its new power stations. Government realises the way forward is to involve the private sector.
Two businesses that have previously expressed interest in the Technical division are the German airline Lufthansa and Air France.