Finance Minister Nhlanhla Nene has quashed speculation that South African Airways is in talks that could result in the national carrier acquiring an equity partner.
There has been speculation that the financially troubled and cash-strapped national airline might seek out an equity partner to alleviate its woes and reduce its dependence on state guarantees.
Former acting SAA chief executive Nico Bezuidenhout was particularly vocal about the carrier seeking a strategic equity partner.
During his recent tenure‚ Bezuidenhout said talks were under way with Etihad Airways, but nothing had materialised.
The sale of stakes in SAA Technical and Air Chefs has also been considered.
SAA is kept going on the basis of state guarantees amounting to R14.5-billion.
In a written reply to a parliamentary question by DA spokeswoman on public enterprises Natasha Mazzone‚ Nene said SAA was not in talks over equity stakes with Air China or any other airline.
SAA entered into a code share agreement with Etihad in 2013‚ a deal that gives both airlines mutual and greater access to the Middle East and the rest of Africa.
Nene said SAA flights to Abu Dhabi were envisaged as the third phase of this agreement.
This would also enable the closure of the Beijing and Mumbai operations. The Beijing route alone cost SAA R30-million a month in losses.
However‚ Nene noted SAA was expected to make losses on the Abu Dhabi route in the first two years.
Government oversight of SAA was transferred from the Department of Public Enterprises to the Treasury at the end of last year‚ so the airline could address its financial problems.
The airline is engaged in a drive to contain costs and has plans to cut staff by about 10.5%. The cost-cutting plan aims to save R2.2-billion in the next three years.
According to the airline’s corporate plan‚ the savings‚ if achieved‚ would ensure a R1.3-billion improvement in earnings before interest‚ tax‚ depreciation and amortisation in the 2015-2016 financial year.
Since Bezuidenhout’s departure‚ the airline is being run by its human resources general manager Thuli Mpshe on a temporary basis. — BDLive
No ‘equity partner’ for cash-strapped SAA
There has been speculation that the financially troubled and cash-strapped national airline might seek out an equity partner to alleviate its woes and reduce its dependence on state guarantees.
Former acting SAA chief executive Nico Bezuidenhout was particularly vocal about the carrier seeking a strategic equity partner.
During his recent tenure‚ Bezuidenhout said talks were under way with Etihad Airways, but nothing had materialised.
The sale of stakes in SAA Technical and Air Chefs has also been considered.
SAA is kept going on the basis of state guarantees amounting to R14.5-billion.
In a written reply to a parliamentary question by DA spokeswoman on public enterprises Natasha Mazzone‚ Nene said SAA was not in talks over equity stakes with Air China or any other airline.
SAA entered into a code share agreement with Etihad in 2013‚ a deal that gives both airlines mutual and greater access to the Middle East and the rest of Africa.
Nene said SAA flights to Abu Dhabi were envisaged as the third phase of this agreement.
This would also enable the closure of the Beijing and Mumbai operations. The Beijing route alone cost SAA R30-million a month in losses.
However‚ Nene noted SAA was expected to make losses on the Abu Dhabi route in the first two years.
Government oversight of SAA was transferred from the Department of Public Enterprises to the Treasury at the end of last year‚ so the airline could address its financial problems.
The airline is engaged in a drive to contain costs and has plans to cut staff by about 10.5%. The cost-cutting plan aims to save R2.2-billion in the next three years.
According to the airline’s corporate plan‚ the savings‚ if achieved‚ would ensure a R1.3-billion improvement in earnings before interest‚ tax‚ depreciation and amortisation in the 2015-2016 financial year.
Since Bezuidenhout’s departure‚ the airline is being run by its human resources general manager Thuli Mpshe on a temporary basis. — BDLive
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