Restructured SAA attracting more investors and funders, says DPE
The department said over the last few weeks, more than 10 entities have shown interest in the national carrier along with Air Chefs, SAA Technical and Mango Airlines.
JOHANNESBURG - The Department of Public Enterprises (DPE) said a significant number of private sector funders and investors showed interest in a restructured South African Airways (SAA).
The department said over the last few weeks, more than 10 entities had shown interest in the national carrier along with Air Chefs, SAA Technical and Mango Airlines.
Part of SAA’s rescue plan was to ensure it returns to profit and remains stable during the global economic crisis, however, there was no clarity yet on where the billions of rand needed to get the plan off the ground will be coming from.
The Public Enterprises Department said both local and international investors have shown interest in getting the new airline off the tarmac by providing it with technical financial and operational expertise.
The department said this would help SAA to keep the airline under local ownership while diversifying its investor base.
The rescue plan had been set to happen in four phases.
Business rescue practitioners said they would need R10 billion at the very least to implement the plan.
In the process, all employees would be retrenched except for 1,000 staff members who have been chosen to start the new airline on different terms and conditions.