SAA can operate for 12-36 months with R3bn investment – consortium

Would not seek to list SAA within the next three years, saying it would first need to be profitable.
Image: Shutterstock

An initial R3 billion ($221.20 million) investment commitment should be sufficient to operate a newly re-launched South African Airways (SAA) for 12 to 36 months, the consortium purchasing a majority stake in the airline said on Friday.

Officials from the Takatso consortium told Reuters they would not seek to list SAA within the next three years, saying it would first need to be profitable. They added that the South African government could dispose of more of its 49% stake in the meantime.

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Whatever , Whomever : NEVER will I go near this airline again :

Agree. Support for SAA is support for shameless ANC corruption. Any case I want nothing to do where the ANC has a finger in the pie or till rather. It is the kiss of death to any business.

As long as they keep their hands out of taxpayers pockets couldn’t care less if SAA is profitable or not. Got to be certifiable to fly in this glorified SOE. Excellent choice though for politicians, ANC hangers on and assorted cadres to fly with.

Very good news, less tax burden for the Tax payer

SAA is tainted. Nobody will buy it’s shares when it is listed. One wonders if they will even exist in 3 years time.

Since when is it an investment to keep something afloat. Don’t one hope to make something from an investment. It seems that ‘something’ has become merely the achievement from not seeing it sink; that seems to be adequate ROI

So its a good idea for an airline to appoint people for anything other that skill and experience??

Heish!!!

So they budget either R1 billion per year or R3 billion??

Huge difference and spells disaster if you ask me.

I honestly hope they can get this to work for the sake of the employees, however i question their business acumen the difference between 12 and 36 months in a struggling business is a lifetime. Even if it’s based on their best abd worse case scenarios, it is a big time difference. I suspect it’s closer to 6 months actually and more funding will be needed. This is the problem, the extra funding. As long at the new shareholder puts in 51% of the funding required,raised from their own sources(ie bank loans etc), not DTI,PIC,IDC,and they take the full the commercial/business risk with their funding,then I’m quite happy with the government putting in 49%. Any decent businessman who is indebted to the bank and having needed to provide some kind of guarantee/surety in place will be ruthless in fixing the business or cut their losses. It’s very different to the current socialist approach.

Don’t see why any government should own an airline (outside of perhaps a pension fund).
Full stop.

End of comments.

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