Government seeks investor for SAA

SAA, SA Express and Mango could soon see the introduction of a private equity partner owning up to a 25% stake in the three airlines, Minister of Public Enterprises Lynne Brown announced during the recent Airlines Association of Africa (AASA) AGM in Windhoek.

“It will be the first time we are looking at finding a private shareholder for all three state-owned airlines,” the Minister said. To find a shareholder for the three companies, government will need to have the airlines work closer together. Although details on how the airlines would be combined have not been finalised yet, the Minister said it could either be through a merger or through a common holding company.

“We need to force them to work together and, for the moment, that isn’t so.” She said that currently Mango was heavily reliant on SAA for its overheads. “SAA actually carries Mango without Mango paying benefits to SAA.”

Greater private-sector participation within the state-owned airlines would also mean bringing in managerial, technical and other support, said the Minister. Eventually, this could mean that the state-owned airlines would become economically and financially stable and start paying dividends to government – the airline’s largest shareholder, she said.

She said the focus for an investor was currently on a medium-haul airline.

Ethiopian Airlines would be an obvious choice, according to industry players, as it has expressed interest in investing into other airlines on the continent.

Sоurсe: tourismupdate.co.za