Justin Pearce
SOUTH African Airways’ sponsorship of the Olympic team’s trip to Atlanta cost about R25-million, the Mail & Guardian has learned.
SAA spokesman Leon Els would not comment on the sum involved, but said the sponsorship money came from SAA’s promotions budget and was part of a broader business plan.
SAA has recently been rumoured to be in financial difficulty, having reported a loss of R100-million in the first quarter of 1996, and said to be down R42-million for the second quarter. Els claimed this was to be expected owing to the increase in the fuel price and a reduction in the number of South Africans travelling abroad, and did threaten the airline.
Controversy arose this week around SAA’s gift of air tickets to Transport Minister Mac Maharaj and Public Enterprises Minister Stella Sigcau. Maharaj came under particular fire from the Democratic Party since his wife and two children accompanied him to the opening of the games.
SAA originally offered Maharaj two tickets to Atlanta, but provided an additional two tickets for his children when Maharaj asked for them. He said he did not get to spend enough time with his children, and had planned a family holiday before receiving the offer from SAA. He told the airline he would only take up the offer if his children could accompany him.
Els said Maharaj and Sigcau had been invited because they are the ministers with whom SAA has the most dealings. This has given rise to suspicions the airline was trying to gain favour with the two ministers who are in a position to affect its future, Sigcau, since she is in charge of privatisating parastatals, and Maharaj since civil aviation is part of his portfolio.
Els denied SAA had an ulterior motive in hosting the ministers. “There’s nothing sinister about this.”
Maharaj does not believe he is close enough to SAA for his acceptance to create a conflict of interests. He argues that SAA, as national carrier, makes an input on any decision regarding route licencing, and he as minister may accept or reject the airline’s suggestions. In any case, decisions on licensing air routes lies ultimately with the director general of transport, not the minister.
Maharaj said his primary motivation for accepting the tickets was to support the South African Olympic team. But having been offered the tickets, he realised with Cape Town’s Olympic bid coming up, it could be useful to use the opportunity to inspect Atlanta’s public transport arrangements for the games, and discussed this with the director general who agreed.
In addition to the ministers, SAA also hosted 36 “corporate clients” at the opening of the games, who Els says were representatives of companies which frequently flew with SAA.