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State-owned aviation maintenance companies to cooperate

SAA Technical

SAA Technical

Photo by Duane Daws

22nd July 2013

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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The Department of Public Enterprises is seeking to develop closer relations between the country's three State-owned aviation maintenance, repair and overhaul (MRO) organisations, Denel Aviation, SAA Technical and South African Express Technical. 

Denel Aviation is part of the Denel defence industrial group while the other two are part of the South African Airways (SAA) group.

The objective is to create a "world-class MRO organisation at OR Tambo [International] Airport," affirmed Public Enterprises Minister Malusi Gigaba at the 2012/13 Denel financial results presentation on Monday. "I have instructed the [Denel] board to cooperate with SAA. This is part of a policy to push State-owned companies to work together."

"We had said during the Budget Vote on May 14 that our key focus was going to be on driving an industrialiSation and transformation agenda. To that effect, we're looking at synergies between different State-owned companies on a number of programmes that might ignite collaborative efforts that might develop engineering and manufacturing capabilities," he stated in reply to a question from Engineering News Online.

There was currently no idea of merging the three MRO operations. "The idea of mergers is still far-fetched, still far from our minds," Gigaba asserted. "But we are looking at synergies, leveraging the capabilities of Denel Aviation, SAA Technical and SA Express Technical. We're not talking a merger, yet. We are talking synergies."

The Minister reported that the three companies were already talking about such cooperation at the CEO and board levels. However, Gigaba affirmed that he would drive this process harder, as he believed more urgency was required.

Edited by Creamer Media Reporter

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