SAA board chair says no plans to privatise airline despite cash crunch
In March, an expected partnership with the Takatso Consortium - which would have given the airline a R3 billion boost - fell through.
SAA board chairperson Derek Hanekom before Parliament's standing committee on public accounts (SCOPA) on 22 October 2024 to discuss the non-tabling of SAA's financial statements. Picture: Phando Jikelo/Parliament
CAPE TOWN – South African Airways (SAA) says it will need a cash injection to expand its operations.
But the carrier's board chairperson - Derek Hanekom - says the airline does not expect this from the fiscus.
On Tuesday, its board and management told Parliament’s standing committee on public accounts (SCOPA) that it’s keeping its options open for a strategic equity partner.
In March, an expected partnership with the Takatso Consortium - which would have given the airline a R3 billion boost - fell through.
Transport Minister Barbara Creecy was before Parliament to explain the perennial non-tabling of audited financial statements for the national airline.
SCOPA heard the airline is still playing catch up after five years of non-compliance.
The 2022/23 financial statements are expected to be tabled before an annual general meeting soon.
While the audit for 2023/24 is only expected to be completed in February next year, Creecy insists the airline is liquid - but needs cash.
“If a development finance institution wanted to take equity, that - I think - would be a good solution. We have that solution in ACSA [Airports Company South Africa] where the PIC owns equity.”
Despite the cash crunch, Hanekom has been at pains to point out there are no plans to privatise the airline.
“At this stage, there’s a common understanding that if we are going to grow as much as we would like to grow, there will have to be some kind of investment.”
While the airline is shopping for a commercial loan, Creecy said this would only be for black swan events.