Question NW376 to the Minister of Finance

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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:

  1. The values are total Rand value and total number of single trips (legs) for calendar year 2019.
  2. The values include all government institutions that uses the government deal codes as per the National Treasury’s centrally negotiated discount rates (including Parliament).
  3. The data provided was not provided per individual (compliance to POPI Act), hence only total amounts are used.
  4. The values exclude other domestic and international airlines. The data is not readily available.
  5. SAA Economy class Average Price per Ticketwas calculated based on the average price of full Y-class tickets on all the routes. (R6181.00)
  6. 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.

 

COST ANALYSIS FOR FLYING BUSINESS CLASS COMPARED TO ECONOMY CLASS

 

British Airways

South African Airways

 

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

 

 

R994

 

 

R292

Estimated saving per Airline

 

 

R8 915 759

 

 

R3 757 196

Total Estimated Saving

R12 672 956

 

Notes:

 

 

 

 

 

 

* Not provided

 

 

 

 

 

Conclusion

The pronouncement made by Minister of Finance to cut Business Class travel will yield the desired outcome.

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