Johannesburg - The government remained tightlipped on indications that there were rescue talks for the purchase of a stake in SAA by Ethiopian Airlines.
This was after Ethiopian Airlines head Tewolde Gabremariam said the discussions were under way with the government for embattled SAA.
The national carrier needs R10 billion to start operating again and is in business rescue.
The Department of Public Enterprises and business rescue practitioner Siviwe Dongwana could not be reached for comment.
But in a statement released by the department last month it said the government has “received more unsolicited interests from private sector funders, private equity investors and investors” for a stake in SAA.
It said the government had received up to 10 unsolicited interests to acquire a stake in the airline. The department said it was assessing proposals from the various parties.
“The Department of Public Enterprises welcomes the attraction of a mix of local and international investor groups to provide the new airline with technical, financial and operational expertise to ensure significant South African ownership whilst diversifying the investor base,” the department said.
Political parties welcomed rescue talks between Ethiopian Airlines and SAA, but have called for terms and conditions of the deal to be above board.
SAA has been in a financial crisis for the last 10 years, having last made a profit in 2011. It has incurred losses of R32 billion in the last decade.
DA MP Ghaleb Cachalia said that regardless of who is in talks with SAA, the key issue was that the contents of the discussions, including the terms of the arrangement, had to be disclosed by SAA, the business rescue practitioners, the Department of Public Enterprises and Minister Pravin Gordhan.
“This needs to be made public so that it can be known on what basis they are proposing to get involved and then we can evaluate it. We are interested to see what basis that is, because the basis will determine everything,” said Cachalia.
He added that the state of SAA was clear for all to see as it was bankrupt, mismanaged and in debt and that getting another continental airline or anybody else to come in and fill the gap, even in a private capacity, as competition, was welcomed.
“Many national carriers have co-operations with other national carriers, but these terms need to be made transparent so that we know what we are talking about,” Cachalia said.
IFP MP Narend Singh said this was in line with their view that the country’s state-owned enterprises should move towards semi-privatisation and commercialisation.
“If it is that Ethiopian Airlines wants to partner then it is welcome… they have had a very good track record and they have turned their airline around fantastically; we just hope that all the due diligence and everything has been done,” said Singh.
Ahmed Munzoor Shaik Emam, NFP MP, said Ethiopian Airlines was a very successful airline, truly owned by the state, but with no interference from the state, unlike SAA where politicians wanted to interfere in processes.
UDM leader Bantu Holomisa said: “The truth of the matter is that SAA has been having problems for some time now and having a strategic partnership… there’s nothing wrong with that. So we wish them good luck,” he said.
Political Bureau