Treasury is seeking professional advice on whether and how to restructure the state’s airlines as well as the possible disposal of their noncore assets, Finance Minister Pravin Gordhan said. The possibility of merging South African Airways (SAA), South African Express and Mango or integrating them under a single holding company has been on the government’s agenda for some time as a means of achieving synergies and economies of scale. Another option to be investigated by Treasury is the separate corporatisation of the airlines’ international, regional or domestic routes. Gordhan said the process of appointing advisers was under way, but budgeting issues had to be resolved first. In a written reply to a parliamentary question by DA deputy finance spokesman Alf Lees, Gordhan outlined the terms of reference for the advisers who will be tasked with developing a group structure to realign the airline assets. These assets include a 3% stake in Airlink. The advisers will assess the followin...
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