State ditches plan to merge airlines

Minister backs creation of holding company Equity partner would hold 25% if plan lifts off

a decision on the merger of the three airlines would be made shortly, citing the competition that had developed among them. He said a merger would allow for the three airlines to streamline finances and technical expertise.

Brown insisted in an interview on Sunday that no firm decision had been taken and that the transaction adviser that the department and the Treasury were in the process of appointing would provide guidance. The aim would be to achieve efficiencies, economies of scale and better co-ordination of routes.

Brown said she would prefer to have the three airlines, and possibly South African Airlink, merged, but did not believe this scenario was likely.

In an address on Friday at the Airlines Association of Southern Africa’s 46th annual general assembly in Swakopmund, Namibia, Brown said details about the introduction of an equity partner could be made by the finance minister in his budget speech in February.

“All my discussions with industry role players is that a merger would be too difficult. SA’s Sundowns supporters cheer prior to the African Champions League final soccer match with Zamalek of Egypt on Sunday. Sundowns won 3-1.