https://www.engineeringnews.co.za
Africa
Africa
africa

DPE says State airline should prepare for equity partner

5th November 2018

By: Reuters

  

Font size: - +

The Department of Public Enterprises (DPE) said on Sunday that struggling State-run South African Airways (SAA) should reduce its cost base and prepare for a strategic equity partner in the near future.

Finance Minister Tito Mboweni had said on Thursday that SAA, which has not generated a profit since 2011 and survives on state guarantees, was unlikely to find a private sector equity partner and should be closed down.

The Public Enterprises ministry said the airline should stop all fraudulent contracts, address its cost base, discipline those implicated in corruption and prepare for an equity partner.

"The immediate priority for the Ministry of Public Enterprises is to stabilise SAA financially and through a rigorous process of cost-reduction and commercial re-orientation," the ministry said in a statement.

The ruling African National Congress (ANC) also said on Sunday that there was no intention to shut down the airline.

"The focus now is on decisively tackling the challenges besetting the national carrier," the ANC said in a statement.

In August, President Cyril Ramaphosa transferred oversight of SAA to the public enterprises ministry, which is led by Pravin Gordhan from the finance ministry. Ramaphosa has pledged to revive struggling state firms, including SAA.

Over the past decade, SAA has lost its place as Africa’s biggest airline and a symbol of patriotic pride to become a source of frustration for taxpayers who have forked out more than R30-billion ($2-billion) since 2012 to keep it in the air.

Edited by Reuters

Comments

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.128 0.191s - 176pq - 2rq
Subscribe Now