South Africa won’t give SAA any further funding to resolve wage strike

South Africa’s govt ruled out an intervention in the ongoing battle between the struggling state airline and unions leading a strike, with Public Enterprises minister Pravin Gordhan refusing to step in to fund wage demands. The state has already given South African Airways more than US$1.4b over the past 3 years, Gordhan said Tuesday. The country is facing severe fiscal constraints and no more aid can be made available, he said. “The pattern of bailouts has become a moral hazard,” said Gordhan, who met with the unions in Pretoria. “A restructuring of SAA’s business is required to return the airline to profitability. In addition to growing revenues, efficiencies must be improved and costs will need to be reduced across the board.” <br/>