BDFM Online
Wednesday, November 22, 2006
MEMBERS of Parliament serving on the National Assembly public enterprises portfolio committee told South African Airways (SAA) CEO Khaya Ngqula today that low-cost airline Mango should have started two years ago.
According to the announcements, tablings and committee (ATC) reports issued today, the committee had raised the need for SAA to consider launching a low-cost carrier two years ago - instead of earlier this month - "but our suggestion was not well received".
When this was pointed out to Ngqula, he had replied: "Well things change very fast in this industry. Three months is a long time...."
In effect, he suggested having a low-cost carrier was not right two years ago, but it was fine now, the ATC reported.
Ngqula reported to MPs that the low-cost carrier would be run as a separate business with its own board and management and would lease aircraft from SAA.
He also dismissed reports that government or taxpayers would be subsidising Mango. "The opposite is true. This will probably be shown in the next few months. The low-cost carrier will probably subsidise SAA."
The committee said it would be monitoring the progress of Mango and would seek a full briefing next year when the annual report to the committee was discussed.