Govt willing to cede control of SAA to lure investors, says official

The South African government plans to retain a minority shareholding in South African Airways, while ceding management control to its investors, an official said.

"We are not obsessed with control," Kgathatso Tlhakudi, deputy director-general at the department of public enterprises, said in an interview on Johannesburg-based Radio 702 on Wednesday.

"If we find the right partner who is prepared to inject the technology and access to markets that we require for the airline, and they are assuming management control, we are quite comfortable to let go of that."

With a smaller shareholding, the government will protect certain strategic imperatives, while helping to improve management and governance measures required to ensure SAA's future success, he said.

South Africa received proposals from private investors and potential airline partners interested in taking part in the restructuring of the national carrier. Creditors are due to vote on a rescue plan by administrators this week that proposes a bailout of at least R26.7 billion for the loss-making carrier.

ZAR/USD
17.16
(-0.06)
ZAR/GBP
21.55
(-0.13)
ZAR/EUR
19.35
(-0.04)
ZAR/AUD
11.91
(+0.04)
ZAR/JPY
0.16
(-0.09)
Gold
1792.40
(-0.00)
Silver
18.27
(+0.17)
Platinum
841.52
(+0.63)
Brent Crude
42.97
(-0.05)
Palladium
1917.01
(+0.52)
All Share
55243.80
(+0.72)
Top 40
50922.32
(+0.83)
Financial 15
10086.99
(-0.47)
Industrial 25
76855.87
(+0.55)
Resource 10
52017.34
(+1.71)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1735 votes
I am taking a hit, but should be able to recover in the next year
23% - 2272 votes
My finances have been devastated
34% - 3397 votes
It's still too early to know what the full effect will be
25% - 2459 votes
Vote