With the turbulence behind it, a new SAA returns to the skies
Airline now has a clear vision that includes a strategic equity partner
The management of embattled SAA is bullish ahead of the company’s return to the skies this week after months of turbulence and business rescue. The airline will return to flight on Thursday with flights from Johannesburg to Cape Town, plus African capitals Accra, Kinshasa, Harare and Lusaka.
SAA board chairperson John Lamola said the entity’s board would be focused on the performance of the airline in the coming weeks and months.
“It is due to the wonderful trait of resilience that we South Africans are known for that we have been able to reach this point of SAA rising from the ashes as a solvent company,” Lamola said.
He further said the airline now had a clear vision that included the introduction of a strategic equity partner.
“As a global airline, SAA will no longer be constrained by the complexities of state governance and has the competitive agility of a partially privately owned business.”
Public Enterprises Minister Pravin Gordhan in June announced that the government had found a “strategic equity partnership” for SAA.
The deal will see a grouping called Takatso taking 51% ownership of SAA while government retains 49% of the entity. Gordhan said Takatso would inject R3-billion into the new SAA.
The Takatso consortium is made up of Harith General Partners and airline management firm Global Airways. Global operates a mixed fleet of Airbus A320 and A340 family aircraft in a number of cabin customisation options.
Harith is one of the largest investors across the continent in the five core infrastructure sectors of energy, transport, telecommunications, health and water.
The consortium last month said its due diligence process at the airline was complete with no material issues identified with the deal expected to be concluded soon.
SAA in April exited the business rescue process it embarked on from December 2019. The government has approved R2.7-billion of R10.5-billion allocated for SAA’S business rescue plan to be reallocated to its subsidiaries, Mango, SAA Technical and Air Chefs.
Lamola said a major focus of his board in the future would be to balance the interests of private sector participants and the state. “Since SAA went into and then out of business rescue there has been less local capacity and that means tickets have become more expensive.
“Our return to the skies will mean more competitive pricing and will enable more South Africans to fly.”