South Africa mulls merger of loss-making three state-owned airlines

South Africa's government is considering merging its three stateowned airlines into one entity, and offering a 25 percent stake of the holding company to a private equity partner, according to a statement by a cabinet minister on August 30.

The loss-making South African Airways, its low-cost arm Mango and SAA Express, which services smaller towns, are struggling to remain profitable amid increased competition and rising operational costs.

“I believe the answer to all of it lies in how we rationalize the three companies and how we bring in a 25 percent shareholder to help us with both management as well as on finances,” Public Enterprises Minister Lynne Brown told a parliamentary committee.