Reports that a decision to shut down troubled South African Airways has been reached has saddened the Centre for Trade Policy and Development.
CTPD Executive Director Isaac Mwaipopo said the development is saddening.
He said shutting down SAA is bad for South African but hoped that Zambia could learn from the experience as it attempts to relaunch Zambia Airways.
“Too bad for South African Airways, hopefully, our government can learn something from this turn of event,” Mr. Mwaipopo said.
He said CTPD has for the past two years been advising the government to reconsider its intentions to relaunch a national airline.
“CTPD has for the past two years been advising the government to reconsider its intentions to relaunch a national airline, we have raised concerns around the business model, the financing plan and many other aspects drawing our lessons from regional carriers like SA, Ethiopian Airlines and Malawi Airlines,” Mr. Mwaipopo said.
On Wednesday, the National Transport Movement (NTM) said a decision to shut down South African Airways (SAA) and form a new airline has been reached.
The union says the plan was confirmed on Tuesday during a meeting between SAA unions and Public Enterprises Minister, Pravin Gordhan.
In terms of the agreement, the government will source R2.2 billion funding for severance packages.
The decision will result in the termination of all SAA employees’ contracts.
However, current airline staff will be given preference for employment in the new airline.