The government has retreated from its proposal to merge SA’s three state-owned airlines, with Public Enterprises Minister Lynne Brown saying a full merger is "highly unlikely" but backing the introduction of a private equity partner with a stake of up to 25% in a new company that will hold South African Airways (SAA), Mango and South African Express as subsidiaries. Her views mark a shift from the approach of Finance Minister Pravin Gordhan, who said in his February budget speech that the government did not need to be invested in four airlines (including minority-owned South African Airlink). "Minister Brown and I have agreed to explore the possible merger of SAA and South African Express under a strengthened board with a view to engaging with a potential minority equity partner and to create a bigger and more operationally efficient airline," Gordhan said. Then in April, Deputy Minister of Public Enterprises Bulelani Magwanishe told Parliament that a decision on the merger of the t...
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