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Gulf giants in talks with SAA, City Press says

Emirates and Etihad Airlines said to be in negotiations with the South African state airline.

Two United Arab Emirates airlines have held talks with South African Airways, which has said it urgently needs partners to revive its business, City Press reports, citing Mahash Alhameli, the UAE ambassador to South Africa.

Talks between Emirates Airline and SAA, which have been going on for some months, are being facilitated by the UAE’s embassy in Pretoria, Alhameli said. Etihad Airways has also been holding separate negotiations with SAA, he said.

“It’s company-to-company talks,” Alhameli said, according to the newspaper. “As ambassador, I’m facilitating that.”

The UAE plans to invest as much as $10 billion in South Africa’s economy, a commitment made during a visit by the nation’s President Cyril Ramaphosa’s visit this month.

While the UAE sees potential to invest in the state-owned power utility, Eskom, those discussions aren’t as advanced as the airline talks, Alhameli said. The UAE is aware of financing needs for SAA and Eskom and talks started before the Gulf nation announced a pledge to invest, he added.

SAA is urgently seeking a strategic equity partner as an answer to its financial problems, spokesman Tlali Tlali said July 10.

Read: How hollow is Solidarity’s SAA victory?

© 2018 Bloomberg L.P

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The ANC used BEE, state capture, cadre deployment and corruption to buy votes. These criminal policies sucked South Africa dry and pushed SOE’s to the brink of implosion. This parasitic organisation is abandoning the decimated host now, to latch onto a fresh and healthy unsuspecting prey. The UAE now also contracted the ANC disease. They are about to discover that Luthuli House is a financial sinkhole.

…”sinkhole”? I bet you had another word in mind… I did.

I again think that the ANC Rulers need to be wide awake! The UAE is a well known refuge for some of the World’s rogues and their ill gotten money. ANC BEWARE!!

Got to wonder whether the Guptas have wormed their way into Dubai as they did here.

Hopefully for SAA’s sake they steer clear of the parasitic Etihad Airlines that has left a wake of smaller airlines (such as Alitalia and Air Berlin) much worse off. Even their previous codeshare with SAA was cancelled because they promised the world but offered nothing due to their poor connections and inability to compete with the far better ran Emirates. Emirates itself won’t solves all of SAA’s problems – they themselves ran limping away from Angola a year or two ago when they tried to take over TAAG. Any deal with either airline will need very careful negotiating on the part of government as they could end up destroying whatever still works with SAA.

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