Private airline Comair’s legal action against government bailouts for South African Airways (SAA) is set down for three days in the Pretoria High Court starting on Tuesday.
Comair brought the challenge in February 2013‚ “following the then-latest government bailout of R5-billion in 2012”‚ said a statement by the Free Market Foundation (FMF) on Monday.
“In 2015‚ total government bailouts now amount to over R 30-billion.”
The FMF release said: “Comair seeks to challenge the constitutionality of government bailouts to a state owned airline competing with private operators in SA’s domestic aviation sector.”
The airline contends that the bailouts do not comply “with either the Domestic Aviation Transport Policy or the law (the Constitution; the Public Finances Management Act (PAJA); the Promotion of Administration Act and the SAA Act)”.
In April‚ Business Day reported that a state attorney appeared to have gagged Comair CEO Erik Venter from speaking publicly about the court action at an event hosted by the FMF in Bryanston on Thursday.
Venter had‚ the paper said‚ intended to provide background detail about the economic and market-related circumstances which led to the legal challenge against SAA rather than legal arguments‚ but he acceded to the request.
Comair action on SAA bailouts in court this week
Private airline Comair’s legal action against government bailouts for South African Airways (SAA) is set down for three days in the Pretoria High Court starting on Tuesday.
Comair brought the challenge in February 2013‚ “following the then-latest government bailout of R5-billion in 2012”‚ said a statement by the Free Market Foundation (FMF) on Monday.
“In 2015‚ total government bailouts now amount to over R 30-billion.”
The FMF release said: “Comair seeks to challenge the constitutionality of government bailouts to a state owned airline competing with private operators in SA’s domestic aviation sector.”
The airline contends that the bailouts do not comply “with either the Domestic Aviation Transport Policy or the law (the Constitution; the Public Finances Management Act (PAJA); the Promotion of Administration Act and the SAA Act)”.
In April‚ Business Day reported that a state attorney appeared to have gagged Comair CEO Erik Venter from speaking publicly about the court action at an event hosted by the FMF in Bryanston on Thursday.
Venter had‚ the paper said‚ intended to provide background detail about the economic and market-related circumstances which led to the legal challenge against SAA rather than legal arguments‚ but he acceded to the request.
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