[ad_1]
The South African government expects to conclude the national carrier’s semi-privatization deal in the next four months. The carrier is expected to be sold to the Takatso Consortium in a deal that has been stretched over a long period.
Earlier this week, South African Airways (SAA) appointed former Minister of Tourism Derek Hanekom as interim chairperson. Although stating that it is still premature for him to comment on the pending 51% stake sale of SAA, Hanekom said Public Enterprises Minister Pravin Gordhan has indicated that the deal would be finalized within four months.
SAA’s interim board
On April 15, SAA appointed a new interim board of directors, with Derek Hanekom as the chair. The other board members include; finance experts Fathima Gany and Clarissa Appana, former Airports Company of South Africa (ACSA) Chief Operating Officer Fundi Sithebe, economist and strategist Dumisani Sangweni, finance and business strategist Mahlubi Mazwi, and corporate lawyer Johannes Weapond.
Photo: LO Kin-hei/Shutterstock
SAA’s former interim chair John Lamola will remain on the board as interim CEO and director. The board will serve until the deal with Takatso is finalized while focussing on providing strategic leadership to transitional management. According to News24, Minister Gordhan said in a statement;
“To support SAA in achieving its goals, we have put in place strategies and plans that align with the airline’s vision and objectives.”
The sale of the national airline was first announced over two years ago, and the deal is still under regulatory review. Takatso has highlighted that it will not take the 51% stake in SAA until its historical debt is settled. In the 2023 budget, the carrier was allocated R1 billion ($55.5 million), but the DPE estimates an additional R2.5 billion ($138.8 million) is required to clear all debts.
A deal that has been met with adverse reactions
The timing of the appointment of the new interim board has raised concerns across the industry. According to ch-aviation.com, the National Unions of Metalworkers of South Africa (NUMSA) questioned the appointment of this new board. It noted that the public enterprises minister gave no valid reason for replacing an interim board with another during an airline audit.
The privatization of South African Airways has also been met with adverse reactions among stakeholders. The deal has been delayed for months, which left the public asking numerous questions. Pravin Gordhan gave an impression of a future sustainable SAA which will not require taxpayers’ money.
Photo: Vytautas Kielaitis | Shutterstock
That will be possible through the sale of the majority shareholding to a professional private organization capable of implementing measures for the airline to operate profitably. The Takatso Consortium is the government’s preferred strategic equity partner, but one of the few hurdles the DPE faced was the competition commission’s approval. The minister now expects the deal to be finalized within four months.
However, various stakeholders have noted other challenges the DPE may face in finalizing the deal and for SAA to return to profitability, including revising legal acts, acquiring operating licenses, changing directors, and purchasing modern aircraft.
The airline is also seeking a strategic partnership with Kenya Airways, which is expected to be finalized in 2024. SAA currently has a fleet of seven operational aircraft, including five Airbus A320-200s, one A330-300, and one A340-300.
What do you think of South African Airways’ privatization deal? Do you think it will be finalized within four months? Let us know in the comments!
Source: ch-aviation.com, News24
[ad_2]
Source link