South African government shortlists three strategic partners for SAA

SOUTH AFRICA – The South African government has short-listed three potential strategic equity partners (SEPs) for South African Airways (SAA). The decision on the preferred strategic partner will be made next month or so,” according to public enterprises Minister Pravin Gordhan. Gordhan told Bloomberg TV that the newly appointed interim board of SAA was engaging with the bidders before the government would make its decision. As per ch-aviation, DPE has engaged Rand Merchant Bank as the transaction advisor after receiving about 30 expressions of interest. The SEP could be expected by March this…

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South Africa seeks US$400m for stake in airline

SOUTH AFRICA – Government of South Africa is hoping to raise about US$400 million from the sale of a stake in its bankrupt national airline, South Africa Airways (SAA) according to people familiar with the situation, a plan likely to lower the chances of finding a partner to aid its revival. The funds would be used to re-capitalise the reformed South African Airways, the unnamed sources said. The government is banking on SAA attracting interest because it holds some lucrative routes and valuable landing slots, such as at London’s Heathrow…

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SA Express employees to bid for airliner

SOUTH AFRICA – SA Express employees are bidding to buy the state-owned airline in an attempt to save jobs and to prevent the carrier’s final liquidation after North Gauteng High Court in Pretoria granted an extension for SA Express’s final liquidation to October 28 this year. A special purpose vehicle created to bid for the airline’s assets would be backed by private investors and Fly SAX, with the employees as the owner. Fly SAX Spokesperson Thabsile Sikhakhane said that employees who have not been paid salaries since February want total…

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Airlines Association announces strategic partnership with UK airlines solutions provider

KENYA – The African Airlines Association (AFRAA) has announced a strategic partnership with the leading aviation service provider ACC Aviation Group for the provision of services that will support the development of Africa’s aviation industry.  The strategic partnership forms the basis for AFRAA’s membership services initiative, “AFRAA Consulting – Powered by ACC”, with the global aviation company to lend their expertise across a range of aviation services, including strategic consultancy and asset management, aircraft charter and (Aircraft, Crew, Maintenance, Insurance) ACMI leasing.  “The air transport industry is a key component of Africa’s economic development and…

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South African Airways inks deal with Ghana’s AWA to strengthen commercial ties

GHANA – South African Airlines (SAA) and Ghana’s regional carrier, Africa World Airlines (AWA) have signed a Memorandum of Understanding (MoU) to strengthen their commercial ties. SAA which already works closely with AWA is looking to boost its airline routes through a relationship that promote synergies that include code sharing, franchising, and any other related projects. Speaking after signing the agreement at the Ministry of Aviation in Accra, Mr John Xiaoyi Quran, Chief Executive Officer of AWA said the signing of the agreement was a milestone for the airline in…

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South Africa Airways secures US$250m funding in its turnaround strategy

SOUTH AFRICA –South Africa Airlines (SAA), a state-owned airline, has secured a US$250 million funding to enable the cash strapped firm to finance its working capital requirements within the first half of this year. Vuyani Jarana, chief executive officer at SAA sating despite facing serious financial challenge, the airline has made remarkable strides in its turn around strategy,reports Business Day. This comes at a time when the airline is due to pay a US$650 million credit facility, which Deon Fredericks, chief finance officer SAA, said the firm is engaging negotiation…

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