South African government bails national carrier from debts

South Africa’s Finance Minister, Malusi Gigaba, has defended government’s decision to bailout South African Airways from debts.

The government has granted the airline two billion Rand, that’s about $152 million to stay afloat.

But, critics of government’s action believe that the grant was reckless as it would encourage the airline to pile more debts.

Many people have suggested that South African Airways be privatized rather than government funding its operations.

Report says the airlines has a debt over hang of $688 million.