SAA has a new strategic partner
SA Airways has a new strategic partner that will own 51% of the airline.
Public enterprise minister Pravin Gordhan on Friday announced that the government has reached an agreement with a private company, Takatso Consortium, that will own 51% of the struggling airline, while government will own 49%.
Takatso Consortium is 51% black-owned.
Takatso Consortium is expected to initially pump in R3bn into the airline while retaining it name.
Gordhan said that the government would not be putting any more money into SAA and that all funding would come from Takatso.
The new airline will be launched once all “due diligence” has been completed. This was expected to take a couple of weeks, he said.
Gordhan also announced that the airline will still be headquartered in the country and that management will also be mostly black.
The SAA business rescue process officially ended in April with the government announcing at the time that they would be going into negotiations to look into finding a strategic equity partner.