The South African Airways (SAA) Bill, which converts the national airline into a public company, got the nod of the second chamber of Parliament, the National Council of Provinces, on Tuesday.
The SAA Bill has already received the nod of the National Assembly.
Public Enterprises Minister Alec Erwin, noting that SAA would be separated from the umbrella transport parastatal Transnet in terms of the legislation, said the national airline operated in an industry “which has markedly different conditions” to the rail and port freight systems operated by Transnet.
Accordingly the Bill removes SAA from Transnet’s balance sheet and moves shareholding to the Department of Public Enterprises.
The legislation allows for the conversion of SAA from a private to a public company. Noting that Eskom and Transnet are both public companies, Erwin said it allows these entities to rely on their own balance sheets for funding of their operations and reduces reliance on government guarantees.
“This is something we wish to encourage with SAA,” he told MPs on Tuesday.
“The preamble [of the Bill] gives the basic strategic reasons for retaining ownership with the state in order that we retain strategic control of decisions within SAA … and help us promote links with the African market and internationally.”
“To contribute to the rapid growth of this continent, we need a strong aviation platform. South Africa and the continent are the third fastest growing markets in the global airline industry,” he noted.
The Bill can now go to President Thabo Mbeki for signature. — I-Net Bridge