Question NW376 to the Minister of Finance
24 August 2020 - NW376
Mohlala, Mr M to ask the Minister of Finance
What amount has he found would the Government save if (a) Ministers, (b) Deputy Ministers, (c) Members of the Executive Council and (d) senior managers in (i) national and (ii) provincial government flew economy class when executing their official duties?
Reply:
The information provided on this response is based on data provided by SAA and BA (two of the airlines that provides Business Class Cabins in the country).
The following assumptions apply:
- The values are total Rand value and total number of single trips (legs) for calendar year 2019.
- The values include all government institutions that uses the government deal codes as per the National Treasury’s centrally negotiated discount rates (including Parliament).
- The data provided was not provided per individual (compliance to POPI Act), hence only total amounts are used.
- The values exclude other domestic and international airlines. The data is not readily available.
- SAA Economy class Average Price per Ticketwas calculated based on the average price of full Y-class tickets on all the routes. (R6181.00)
- The values are exclusive of airport taxes and inclusive of VAT
Observations
If all Business Class tickets for 2019 were to be converted to Full Y Economy class tickets, on the two mentioned airlines only, Government could have saved R12 672 956.
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COST ANALYSIS FOR FLYING BUSINESS CLASS COMPARED TO ECONOMY CLASS |
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British Airways |
South African Airways |
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Total cost (2019) |
Total # Legs |
Average price per ticket per leg |
Total cost (2019) |
Total # Legs |
Average price per ticket per leg |
Business Class |
R23 676 021 |
8967 |
R2 640 |
R83 320 961 |
12873 |
R6 473 |
Economy Class (Full Y) |
R53 511 915 |
32509 |
R1 646 |
* |
* |
R6 181 |
Difference between Business Class and Economy class ticket |
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R994 |
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R292 |
Estimated saving per Airline |
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R8 915 759 |
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R3 757 196 |
Total Estimated Saving |
R12 672 956 |
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Notes: |
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* Not provided |
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Conclusion
The pronouncement made by Minister of Finance to cut Business Class travel will yield the desired outcome.