The Department of Public Enterprises (DPE) has reported that there is indeed investor interest in the State-owned national airline, South African Airways (SAA), which is currently under business rescue. The DPE stated that the government had received unsolicited proposals from private equity investors, private-sector funders and possible airline partners, regarding a new national flag carrier, that would result from the current business rescue process for SAA.

“Government is intent on pursuing credible proposals for investment and strategic partnerships with the private sector, as well as equity participation for employees,” assured the DPE. “Such partners will introduce technical, financial, and operational expertise.”

It was the aim of the government to “fundamentally restructure and transform SAA” to ensure its viability, sustainability and competitiveness. The DPE highlighted the importance of the aviation sector in general, and air passenger travel in particular, in supporting and expanding the economy, particularly through tourism, air cargo and business connectivity.

The department affirmed that the government’s desire was that the new flag carrier would possess a number of specific attributes. It would be centred on its customers and offer the right routes at the right times and with competitive prices. It would be agile and expert in and at home with digital technology. It would operate a fleet of modern and efficient airliners, with variable density options and obtained at competitive rates. 

On the personnel side, the new airline should have a board of directors which was competent, effective and empowered and in possession of the necessary aviation experience. Its workforce should be motivated, efficient and productive, and committed to increasing the carrier’s market share.

“The DPE is cognisant that …. there are possibilities for airline partnerships to improve scale and scope and ensure continuity of value creation to the South African economy and long-term sustainability of the aviation industry,” it pointed out. “Government is committed to support the formation of such a new airline with no legacy financial and operational issues which will be managed by competent, competitive and skilled personnel who have strategic and technical capabilities which are critical to the success of the new carrier.”