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FlySafair says would buy SAA’s Mango airline

After finance minister says state should not hold stakes in four carriers.

JOHANNESBURG – South Africa’s FlySafair said on Thursday it was interested in buying fellow low cost airline Mango from the government after Finance Minister Pravin Gordhan said in his budget speech that the state should not hold stakes in four carriers.

FlySafair also said it is not interested in being an equity partner in South African Airways, Mango’s parent state-owned company.  

“We would, however, buy Mango; although obviously it would need to be at the right price,” the company’s chief executive Elmar Conradie said in a statement.

Conradie further explained in the statement that Mango’s fleet and operating model was closer to FlySafair’s low-cost approach, and would be a more natural extension to FlySafair’s successful business model.  He added that operating a larger fleet would afford FlySafair the opportunity to enjoy even larger economies of scale – and through this, potentially offer even lower fares to the flying public. He also noted that government could then channel these funds to bolster the positive 2016 budget presented.

FlySafair currently operates a fleet of seven aircraft, with the biggest national route network of the low cost carriers.  It is part of Safair Operations, Africa’s leading operator of specialised aviation services. Safair celebrated 50 years of business in August last year.

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Dream on Elmar Conradie. No doubt you think that Pravin is ready to hand you 1st prize here. Mango claims they make money. Duo you think the ANC will give up anything that could potentially fill their pockets? You have more chance of falling pregnant than acquiring Mango.

We need to give our “new” FinMin more time before judging him. Within just a few weeks he has established a visibly good relationship with his support team and has come up with a very sensible Budget, but these are early days and the waters are still very stormy – especially with Number One still around. So, if one takes a three year view it is not impossible that the sale of Mango (as well as the rest of SAA) may be put on the table. But first, there are a number of rather unpleasant “internal”cost-cutting measures (such as a smaller Cabinet) that he will have to sell to the huddle around the trough before he will be able to open the door to the likes of FlySafair. And then, of course, he will also have to first break the news to the Guptas…………

They will need to take on one of Zuma’s son’s as a partner or the Guptas.

End of comments.

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