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SAA Business Rescue Plan Under the Spotlight

August 26, 2020

Department of Public Enterprises

An efficient and modern aircraft fleet with hybrid density options acquired at competitive rates resulting in cost efficiency.

In a statement, the public enterprises department highlighted this as one of the desired characteristics of a new South African Airways as outlined in the Business Rescue Plan.

Other characteristics that government and the department would like to see include an offering with the right routes, at the right times and at competitive prices; a network structure that allows for connectivity at hubs, whilst maintaining more aircraft use; a right-sized and motivated workforce and a customer-centric airline.

The department pointed out that more private sector funders and partnership interest for a new and restructured SAA has been received.

“The South African government has received more unsolicited interests from private sector funders, private equity investors and partners for a future restructured South African Airways (SAA) and its subsidiaries.”

More than 10 unsolicited expressions of interest for SAA and its subsidiaries Air Chefs, South African Airways Technical and Mango Airlines had been received at the beginning of August.

The department welcomed the “attraction of a mix of local and international investor groups to provide the new airline with technical, financial, and operational expertise to ensure significant South African ownership whilst diversifying the investor base”.