State to take fresh stab at SAA equity partner
OUTA CEO Wayne Duvenage said government should be stepping away.
South African Airways (SAA) is once again pursuing a strategic equity partner, more than two years after scrapping the controversial Takatso deal. This marks a return to its original strategy following the airline's emergence from business rescue five years ago. The government approved a new process to identify a Strategic Equity Partner (SEP) for SAA, aiming to enhance the carrier's balance sheet, provide access to capital and aviation expertise, support growth, and reduce future financial exposure.
SAA welcomed the decision, emphasizing its importance for long-term sustainability, financial resilience, and growth ambitions. However, details about the potential sale price, SAA's worth, the expected investment, and government control surrender remain unclear. Wayne Duvenage, CEO of the Airline Operators Association of South Africa (OUTA), advocates for a swift, transparent process that offers a majority stake to a new owner, freeing SAA from political interference.
Aviation analyst Guy Leitch highlights the necessity of private capital for SAA, cautioning that money alone won't solve its financial woes. The airline's recent losses and mounting fuel costs due to the Iranian conflict underscore the need for strategic investment. SAA had previously targeted the Takatso Consortium to acquire a 51% stake, with government retaining 49%, expecting R3 billion in working capital over two years.
Despite this, the deal stalled due to regulatory issues and valuation disputes. A subsequent Middle Eastern investment attempt also failed, with Qatar Airways investing in Airlink instead. Duvenage stresses the importance of transparency and public oversight in any future transaction, warning against another process lacking accountability.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
