News

Industries

Companies

Jobs

Events

People

Video

Audio

Galleries

My Biz

Submit content

My Account

Advertise with us

Mango could join SAA, SA Express airlines merger

The government is exploring the possibility of a merger between SA Airways, SA Express and Mango airlines, with a decision to be made shortly, Deputy Minister of Public Enterprises Bulelani Magwanishe has told parliament.

Addressing the select committee on public accounts where SA Express was appearing as a result of its poor performance, Magwanishe revealed some details about plans for the state-owned airlines, saying an undesirable "form of competition" had developed among them.

Finance Minister Pravin Gordhan and Public Enterprises Minister Lynne Brown have suggested a merger between SAA and SA Express, both of which have struggled to stay afloat without government bailouts and guarantees in recent years. Magwanishe's statement indicated Mango could be part of the merger too.

He said Gordhan, Brown and Deputy President Cyril Ramaphosa were looking into the issue and a decision would be made "soon".

There was no indication as to how the merger would affect consumers. He said a merger would allow for the three airlines to streamline finances and technical expertise.

SA Express has in recent years managed to turn a small profit, mostly thanks to extreme cost-cutting measures. However, chairman of the board, George Mothema, yesterday admitted were it not for government guarantees, which allowed it to borrow privately, the airline would not be able to function as a going concern.

Scopa also expressed concern about the quality of the airline's financial statements that contained material misstatements, and its failure to meet its targets.

Source: The Times

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za
Let's do Biz