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

Financial Nigeria Magazine - - Finance -

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.

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