State still weighing up option of airlines partner
The merger of SA’s three state-owned airlines has been on the agenda of Public Enterprises Minister Lynne Brown for some time
The government still has to decide whether or not to introduce a minority equity partner into its state-owned airline assets, says Finance Minister Malusi Gigaba. There was no certainty that if the state were to decide on this option that the strategic equity partner would come from the private sector. Replying to questions in Parliament on Wednesday, Gigaba said the Treasury still had to review the report by consultants Bain & Co SA, who were appointed to look at all options regarding the optimal ownership and corporate structure of the state-owned airlines. These included the financially fragile South African Airways (SAA), South African Express, Mango and a 2.5% stake in South African Airlink. The merger of the three airlines has been on the agenda of Public Enterprises Minister Lynne Brown for some time. Gigaba said the government would have to review the options and recommendations in the Bain report. This would also have to be aligned with the review being undertaken by Seabur...