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The disarray in state-owned South African Airways came to a head yesterday when 8 of its 14 board members resigned. The national carrier’s financial statements have been concealed by an unsure and nervy Department of Public Enterprises (DOPE) in an attempt to cover up a business in massive debt. The DA believes that the time for privatising SAA is now.

Yesterday, SAA board chair Cheryl Carolus and at least 7 other board members reportedly resigned from their posts.

Reports suggest that the faltering national carrier will reveal a loss of R1.5 billion for the last financial year.

SAA has become so dependent on funding from the government that the hesitation from the Minister over its latest request for a R6 billion bailout has led to absolute pandemonium. In what has become an increasingly bizarre scenario, Ms Carolus cited the deterioration in the working relationship between her board and the shareholder (the DOPE). She reportedly explained that the DOPE, led by Minister Malusi Gigaba, had done an about turn on the agreed strategy for the airline.

Clearly, it has become embarrassing for the national administration to continue bailing out the floundering airline. The reality is that the government cannot have it both ways. Either they must concede that bailouts are a way of life when there is public ownership of the national carrier, or they must cut SAA loose through immediate privatisation. Given the enormous cost of these bailouts, the former is a truly unacceptable state of affairs. SAA must now be privatised.

The opportunity costs of SAA bailouts are massive. The government cannot escape one simple question: what could this country do with R6 billion instead of sending it into the black hole that is SAA?

How about rolling out the Youth Wage Subsidy and creating opportunities that would benefit 423 000 unemployed youth? Or building 109 090 RDP houses? Or developing 200 new fire-resistant schools?

The government talks about the pride of a national carrier, but where is the pride in an entity that effectively sucks the public coffers dry at the expense of the public?

Is it fair that SAA continues to be bailed out by government whilst other private airlines are expected to suffer? It cannot possibly be good for the South African economy if Flitestar, SunAir, Nationwide and Velvet Sky are driven out of existence by a business that cannot fail.

I spent the better part of yesterday in meetings with the Competition Commission arguing this point. It has become patently obvious that the time for privatising SAA is now. I will continue to fight for this vehemently in Parliament.