( 3 minutes read)
· South African Airways (SAA) will now be 51% owned by a private consortium. The financial partner will hold 51% of the shares and the government 49%
· The Takatso consortium, which will have 51% stakes in SAA, consists of the pan-African investor group Harith Global Partners and the aviation group Global Aviation
South African Airways (SAA) will now be 51% owned by a private consortium. The financial partner will hold 51% of the shares and the government 49%.
This was revealed by Public Enterprises Minister Pravin Gordhan yesterday (Friday) at a virtual press conference. The Takatso consortium, which will have 51% stakes in SAA, consists of the pan-African investor group Harith Global Partners and the aviation group Global Aviation. SAA was undergoing a traumatic period and the airline was placed on a safeguard plan in December 2019 to bailout from bankruptcy. The independent administrators, under whose care the airline was put in, declared SAA solvent again. The large bailout plan, costing close to US$ 1 billion was accompanied by retrenchment and layoff.
The airline, which was the second largest airline in Africa was heavily indebted and was unable to pay full salaries. It was showing consistently losses since 2011. It survived these years through public funding. Outbreak of Covid -19 further compounded the financial distress of the airline. Analysts attributed mismanagement and corruption during the rule of former President Jacb Zuma for the poor state of the airline.
