Flight firm loses govt subsidy

2010-03-20 22:08

Johannesburg - A government subsidy for a company offering passenger flights between OR Tambo International Airport and Mafikeng Airport has been withdrawn, the North West Department of Public Works, Roads and Transport said on Saturday.

"We have taken a decision, to withdraw a government subsidy from the consortia called Sub-Sahara," said departmental spokesperson Matshube Mfoloe.

"We have also communicated officially, that decision to the company in writing.

Mfoloe said that Sub-Sahara, through SAA Airlink, was a service provider appointed by the provincial government in December 2003 to provide daily flights between Monday and Friday to and from the two airports.

He said while the total amount paid to the company during its service totalled R39.8m - fewer passengers than expected travelled on the company's flights.

"The total amount paid to date to Sub-Sahara, in a form of a monthly subsidy by the provincial government- from December 2003 to December 01 2009- is more than R39.8m.

Our view is (that) the number of passengers using the service was far below what was expected."

Mfoloe said the subsidy began when the local government was lobbying for Mafikeng Airport to have its international status reinstated.

"The international status is currently at Pilanesburg Airport near Sun City.

"We have seriously reviewed this contract against a number of factors and arrived at the conclusion that subsidising the commercial airline passenger service between Johannesburg and Mafikeng, does not make business sense."
 

- SAPA