South African Airways: South Africa scraps deal to sell its national airline
South Africa’s government terminated a deal to sell a controlling stake in its flag carrier after failing to agree on a fair value and other terms, Public Enterprises Minister Pravin Gordhan said.
The government had planned to sell 51% of loss-making South African Airways to the Takatso group, which is made up of closely held Global Airways and private equity firm Harith General Partners, but the talks were called off, Gordhan told reporters in Cape Town on Wednesday.
“We are convinced that SAA can sustain itself in the next year to 18 months and that there are various other ways in which immediate financing can be obtained. But at no stage will SAA will get money from the fiscus,” after being given an number of bailouts, he said. “There is no going back to the past.”
The government is open to SAA entering into other partnerships or code-sharing deals, which would be negotiated by its board, the minister added. He envisions the carrier adding more routes and leasing additional aircraft.
The collapse of the deal, which was first announced in June 2021, is a blow to the government’s efforts to sell off non-core state entities and bring state debt under control.
