Engineering News reports that on Friday, Public Enterprises Minister Pravin Gordhan revealed the new strategic equity partner of state-owned airline South African Airways (SAA), namely black-owned Takatso.
The consortium comprises pan African infrastructure development fund manager Harith General Partners and Global Airways and will own 51% of the airline. Government will retain a 49% interest in SAA. The equity partner is expected to help with SAA’s finances to the tune of R3-billion, while the airline will continue to be headquartered in SA and be managed by SA expertise as far as possible. In April, the airline emerged from business rescue proceedings, which involved reducing its workforce by more than half and trimming liabilities. Gordhan said that the airline would, in future, no longer be dependent on the fiscus and government finances, but noted that R14-billion in state funding would still be needed over the next few years to finalise the business rescue. As part of repositioning the airline, SAA will evaluate its subsidiaries, particularly SAA Technical. Solidarity Research Institute head Connie Mulder commented: “It is extremely unfortunate that thousands of workers lost their jobs and billions of rands were wasted with several failed plans, because the State tried to retain control of the airline. Private ownership was proposed as the only option in 2008 and now, 13 years later, it is finally being implemented. Therefore, it is critical that there should be no political interference in the new SAA again. It is time to get businessmen to do business rather than bureaucrats.”
- Read the full original of the report in the above regard at Engineering News
- Read too, Takatso to give SAA wings, at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page