The SAA, despite being during one among the most important airlines in Africa -- second only to the Ethiopian Airlines -- had not turned in a profit since 2011. it had been placed under a state-approved rescue plan in December 2019 to save lots of it from collapse.
South Africa has agreed to sell the federal government's majority stake within the cash-strapped national airlines, the South African Airways (SAA), to a consortium that has an area private equity firm and a jet leasing company, the country's public enterprises minister Pravin Gordhan informed on Friday. The SAA, the second-largest airline within the entire continent, was grounded in December last year and had since been a drain on state finances, news agencies reported.
The SAA, despite being during one among the most important airlines in Africa -- second only to the Ethiopian Airlines -- had not turned in a profit since 2011. it had been placed under a state-approved rescue plan in December 2019 to save lots of it from collapse, AFP reported, adding that the airline was one among the various symbols of "the mismanagement of state-owned enterprises" that characterised ex-South African president Jacob Zuma's regime. The airlines was having a tough time surviving even way before the coronavirus disease (Covid-19) pandemic, only managing to survive on state bailouts.
"Having evaluated the present environment, the govt has agreed to the (strategic equity partner) owning of 51% of the shareholding and government 49%," South Africa's public enterprises minister Pravin Gordhan said in a web media conference.
The consortium to which South Africa is selling its national airlines comprises of private-equity firm Harith General Partners, an investor in African infrastructure and airports, and Johannesburg-based airline management and leasing firm Global Airways, which owns the recently launched domestic budget airline LIFT. The consortium will own the bulk 51% share while the govt will retain the minority 49% stakes within the shareholding, the minister informed, adding that the new SAA won't be "dependent" on the govt .
