South Africa Defends Airline Bailout As State Seeks Partners
- Treasury says providing support will unlock outside investment
- South African Airways to get $641 million from other budgets
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South Africa’s National Treasury has defended a controversial 10.5 billion rand ($641 million) lifeline for its bankrupt national airline, saying that setting it on the path to recovery will entice private investors.
“Government is not going to want to hold on to South African Airways at all costs,” Treasury Director-General Dondo Mogajane said in an interview after the bailout was announced on Wednesday. “If that means giving up the majority shareholding, that will happen.”