More Than 10 Entities Have Expressed Interest in SAA

The South African government said over 10 private sector funders, private equity investors and partners – which still remain unidentified – have expressed interest in South African Airways and its subsidiaries, as time runs out for the ailing airline to be saved.

As at the beginning of August, the Department of Public Enterprises had received more than 10 unsolicited interests for SAA and its subsidiaries Air Chefs, South African Airways Technical and Mango Airlines. SAA needs more than R10 billion to pay off debtors and to start implementing its business rescue plan, which includes severance packages for several thousand employees.

“The DPE believes that such investments in the airline and its subsidiaries will help support key economic sectors, including tourism and solidify South Africa as an African gateway to international markets,” the department said in a statement today.

While the government has steadfastly maintained it wanted to have a majority shareholding in the new SAA, it now says it wants “a certain level of presence in the ownership of the new carrier.”

The department said such partnerships would also improve scale and scope, and ensure continuity of value creation to the South African economy and long-term sustainability of the aviation industry managed by competent, competitive and skilled personnel, who possess strategic and technical capabilities, which are critical to the success of the new carrier.

– Additional reporting by SAnews.gov.za