Subscribe to industry newsletters

Search jobs

Government determined to see SAA grow

The Department of Public Enterprises and the government say they are committed to ensuring that South African Airways (SAA) grows and that the Strategic Equity Partnership with the Takatso Consortium is finalised.
Source:
Source: Unsplash

Media reports last week suggested that the national carrier is facing possible liquidation if the deal for the Takatso Consortium to purchase 51% of SAA is not completed.

The carrier’s board chairperson professor John Lamola moved swiftly to dispel those reports.

Public Enterprises Minister Pravin Gordhan assured South Africans that the carrier is expected to continue operations for the foreseeable future.

“We urge all regulatory authorities to assist in having a speedy conclusion to this process. We also want to assure the loyal customers of SAA that we will do everything possible to ensure SAA grows from strength to strength.

“We also compliment the executive chair, Prof Lamola, board, and staff for the formidable work they have done to grow the SAA presence in the market and providing a much-needed service to the travelling public given the shortage of capacity,” Gordhan said.

The department said the transaction for the consortium to stake its claim in the carrier is now in the hands of “relevant regulators including the Competition Commission, Competition Tribunal and respective aviation authorities” for approval.

“On Friday, 23 September, SAA celebrated one-year of service since taking to the skies after a successful business rescue process. The business rescue process has resulted in the emergence of a competitive, sustainable and technologically agile airline that is gradually regaining its market share and continues to offer best service to its customers.

“The re-emergence of SAA ensures that the national airline continues to play a critical role in the aviation industry and economy at large by providing air transportation connectivity services for both passengers and cargo, facilitating trade and investment, tourism and promoting job creation,” the department said.



SOURCE

SAnews.gov.za is a South African government news service, published by the Government Communication and Information System (GCIS). SAnews.gov.za (formerly BuaNews) was established to provide quick and easy access to articles and feature stories aimed at keeping the public informed about the implementation of government mandates.

Go to: http://www.sanews.gov.za

Let's do Biz