Gigaba: Govt yet to decide on possible equity partner for SAA
Finance Minister Malusi Gigaba has said the planned merger of SAA, Mango and SA Express might not involve a private equity partner, but a public one.
PARLIAMENT - Finance Minister Malusi Gigaba says government has yet to decide on a possible equity partner for South African Airways (SAA).
He’s told the National Assembly the planned merger of SAA and SA Express might not involve a private equity partner, but a public one.
Former finance minister Pravin Gordhan announced in his February budget speech that a possible merger of SAA and SA Express would be explored to create a more efficient airline.
Gigaba says bids in response to the merger tender have been received and the government is now reviewing them with a view to SAA’s long-term turnaround.
"Once that has happened we will then make a determination of how we move forward."
Gigaba says there's no decision yet whether the minority partner will be a private or public entity.
“There are also opportunities available or actions available for the minority partner to be a public entity, but that determination has not been made yet... we’ll make it at the relevant time.”
SAA's losses stand at around R4.5 billion.
(Edited by Zamangwane Shange)