Johannesburg – South Africa’s government has begun talks with private entities interested in buying into the country’s insolvent national carrier, which needs at least R10-billion to resume operations.
A team from the Department of Public Enterprises and advisers from FirstRand Ltd’s Rand Merchant Bank started negotiations after receiving as many as four promising proposals regarding South African Airways, according to Kgathatso Tlhakudi, the DPE’s director general.
Ideally, the state wants SAA to resume operations by the year-end, although much will depend on a pick-up in demand amind he Covid-19 pandemic and a successful fundraising.
While Tlhakudi declined to identify SAA’s suitors, the government had previously said that approaches have been made by private-equity firms and potential aviation partners.
Ethiopian Airlines Group has in the past said it may be interested.
Minister of Finance Tito Mboweni has made clear that any fresh cash injection must come from private sources. The National Treasury has already committed to providing R16.4 billion in debt guarantees.
