A challenging chapter is unfolding in South Africa’s aviation industry as the Joint Provisional Liquidators of SA Express Airways will issue an ‘Expression of Interest’ notice to test the markets appetite for equity partners or buyer of the airline or its part or all of its assets.
SA Express has floundered in recent years with allegations of mismanagement and corruption making headlines. However, it seems the Covid-19 pandemic may be the final straw to break the back of the once proud state-owned airline.
GoIndustry DoveBid, a leading global asset disposal consultancy firm (with experience and expertise within the aviation sector) has been mandated by the Joint Provisional Liquidators to lead and manage the Expression of Interest sales process. There is significant value to be found throughout all aspects of the operation, not least of which are the eight Bombardier CRJ200 jet airlines, engines, rotables and infrastructure.
“In terms of the Provisional Liquidation order we have a short period to gauge the interest of the marketplace and check validity of expressed interest submission. This will then be presented to the Provisional Liquidators, who will review and seek to determine the best way forward and the best outcome for SA Express Employees, Creditors and Shareholders.
“There are some provisos, would be investors or buyers must be able to operate in the South African environment, must be able to be financially sustainable and outline their employment strategy and transformation within the aviation industry. As a result, we are working to manage the process in the most transparent way and in an accelerated process as to ensure that all technical and operational licences can be preserved,” says John Taylor from GoIndustry Dovebid who is leading this process.
He adds that the opportunity is there for an entrepreneurial consortium to gain access into the domestic and regional airline market. This process could normally be notoriously difficult and therefore the real treasure in these circumstances may well be licences and statutory requirements that are already in place.
The assets of the company include:
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Eight Bombardier CRJ200 jets
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Engines and spare parts
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GSE, specialised tooling, workshop and support equipment
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Licenses (operating, AMO, ATNS, ICASA etc), IT infrastructure and all other intangible assets required to operate an airline in South Africa