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South Africa could sell shares in revived SAA

New airline ‘would be partly owned by the government and more broadly by private-sector investors and we should move with speed’ – Mboweni.
Image: Supplied

South Africa could offer to sell shares in the bankrupt national airline to the public as part of an ambitious new plan to revive the carrier outlined by Finance Minister Tito Mboweni.

The government could bring the various parts of the South African Airways group into one company that would be co-owned by the state, pension funds, individual investors and an operational partner, Mboweni said in an interview at the Bloomberg Capital Markets Focus virtual event on Tuesday. That includes low-cost arm Mango and maintenance unit SAA Technical as well as the flagship carrier.

Read: This is where SAA got its R10.5bn from

The plan comes as SAA’s fleet of planes sit idle while the government and administrators strive to complete a plan to get the national carrier back in the skies. Mboweni set aside R10.5 billion to fund the carrier last month, but has repeatedly voiced his opposition to the move and this week questioned whether a private company shouldn’t be given the chance to fill that space in the market.

“The government has made a decision to support a restructured airline, not the existing one,” Mboweni said.

South Africa has said a number of private investors are interested in helping revive SAA, and Mboweni said talks are going well. However, only Ethiopian Airlines Group has expressed a public interest, and only then without providing capital.

SAA’s biggest champion in government is Public Enterprises Minister Pravin Gordhan, but his plans to create a new airline out of the ashes of the troubled carrier lack detail on how that can be achieved.

SAA has the potential to be a sound business but would benefit from having an industry-investment partner to improve its management, one of the bankrupt state carrier’s administrators said Tuesday. The airline has had nine permanent or acting chief executive officers over a 10-year period.

© 2020 Bloomberg L.P.

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Honestly, this is a pipe dream and I’m talking the crack pipe variety! Who exactly is going to invest in this ongoing disaster? Only a fool would take such a risk with their capital. It will never be allowed to operate purely on business principles. Government WILL interfere and disaster WILL follow. Pravin Gordhan is lying to himself and everyone else. But of course he will never be made to account for this idiocy. They never do.

Agree.Why does MW publish fairy tale drivel like this over and over again? Rational ideas are foreign to and a never works with ANC. Just looting and corruption.

“However, only Ethiopian Airlines Group has expressed a public interest, and only then without providing capital”

Well, yes. We all know what happens to your capital if you give it to a state owned enterprise.

I don’t think anyone would want these shares for free. They would need another bailout in order to pay shareholders to take up their shares.

We have some very intellectual individuals in this country. Thousands keep voting for the ANC that keeps stealing from them.

This will be nothing different. Its like a moth to a flame.

Whahahaaahahaaaaa.

My mistake – ANC voters love free stuff

Tito must be thinking of all those imaginary friends that he talks to on Twitter???

The ANC cannot even manage their own party, let alone the country and the last 20 years have shown how well they managed an airline. Instead of the new plan, why not just give ‘gift’, loan one of the planes to the air force so that parliamentarians can continue receiving their R10 million worth of free flights a year. That’s the only thing they seem capable of doing – free flying/loading.
Anyone starting an airline today is either very stupid or is very clever with deep pockets and no political interference – especially of the anc kind. This thing cannot be allowed to happen at the expense of the kids in the townships.

What investor would put money into a company (and country )with these track records and not have control of the management?

Then add on the fact that the airline industry is in difficulty globally, GDP growth is expected to be poor here for years( restricting air travel) and the investors assets are at risk both ownership and currency.

Just let it go. No one will buy SAA shares.

We all know enough about SAA.

The one which we all go to work to pay tax for, hence why South African tax payers dislike SAA.

Close it.

Delusional at best. Why does the ANC think they have anything to offer except crony capitalism and ruin?
To any prospective investor, go and look at how minority shareholders at ACSA have been treated. Then walk away.

let’s see… so the funders are the state, pension funds and individual investors. That’s easy, that would be taxpayers, prescribed assets/SOE pensions, and individual investors, that would be the PIC. So funding is a non issue really.

Operational partner… well there are lots available if they don’t have to put in capital. I’ll do it.

See, so the plan is easy to implement.

Oh you want to make a profit for shareholders? No, sorry, can’t help you.

SAA wet dream being recycled. I think you will need to search long and hard to find a economic masochist that wishes to partner up with the ANC apparatchiks .

List it so I can short it.

SAA may be in the same boat as SABC; on the bloated salaries staff receives.

This was posted on twitter by Farial Hafejee.

Looking at these numbers ; would you put your monies in such an organisation where :

1. The ratio of staff to managers to so lopsided
2. Salaries not market related. Looks to high.

————————-

On the @SABC protests and money

On the @SABC protests and money

Apologies. This details is cutting off

Full time staff at SABC = 2979

Management :
Top 8 : R3.9 mn /pa
Senior 27 R2.149-mn/pa
Middle 374 R1.2-mn p/a
Junior 49 R998 000 p/a
Supervisor 1652 R678 000 p/a

Workers
Rest 429 R464 000 p/a (lowest salaries at SABC)

Unfreaking-believable. What does SABC do that requires bloated salaries like this? Utterly ridiculous. And they wonder why they are broke???

What a farce of note. I read this morning they want black pilots in future only, so now their so-called business approach is clouded with political drivel. I would rather go with “best” pilots, whatever the hue of the skin. Go fly a kite.

How would they meet the regulatory parameters ????????????????????????????????

Look I think post Covit, there could be good value investing in certain carriers, but I’m not sure a serious investor will look at the new look SAA given the history. Would have to be a brave investor! Good luck with that.

The SAA saga to be revived…

OK, in that case ACCEPTED….but please, Government DO NOT EVER tell the taxpaying public that Govt is later on short on funding for this or that.

Now go and play with your ‘new’ aeroplane toy! Don’t ask Mommy/Daddy later for ice-cream money! (That WAS your ice-cream money!!)

…only Ethiopian Airlines Group has expressed a public interest, and only then without providing capital.
I got no money so I also want shares. How about it mr Mboweni?
At least I’m an SA citizen?

New airline ‘would be partly owned by the government and more broadly by private-sector investors and we should move with speed’ – Mboweni.
Please define “more broadly” Mr Mboweni.
Is it 5%? Or 15 or 15.5? Or 95.5%?

If you’re a SA tax-paying citizen, you ALREADY have shares in it! Lots of shares too!

Sell Shares in SAA!! More like pay someone to take them.

Daar is nie pille vir dom nie.

Unlisted shares in SAA! Tito got the idea from what SA Express (another SA government airline that hit the dust this year) did to try get out the dwang; partner with a KwaZuluNatal-based church with more than 3 million members!
Now they’re all shareholders in the NEW SA Express- Gordhan for the DPE; airline staff; and the church!

Nifty; when taxes dry up for bailouts there’s always the deep stash of Sunday collections to turn to…..

a little late in the year for an April fools joke is’nt it

Nothing is EVER too late for Tito and Gordhan – not even SAA itself is past its “sell by” date!

End of comments.

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