[ad_1]
By Samkelo Mtshali, Siyabonga Mkhwanazi 
4h ago
Johannesburg – The government kept its lips closed on indications of bailout talks for the purchase of a stake in SAA by Ethiopian Airlines.
This was after Ethiopian Airlines director Tewolde Gabremariam said that discussions were ongoing with the government over the beleaguered SAA.
The national airline needs R10 billion to start operating again and is in commercial rescue.
The Department of Public Enterprises and business rescue practitioner Siviwe Dongwana could not be reached for comment.
But in a statement issued by the department last month, it said the government has “received more unsolicited interest from private sector funders, private equity investors and investors” for a stake in SAA.
He said the government had received up to 10 unsolicited interest to acquire a stake in the airline. The department said it was evaluating proposals from the various parties.
“The Department of Public Companies welcomes the attraction of a combination of local and international investor groups to provide the new airline with technical, financial and operational expertise to secure a significant stake in South Africa while diversifying the investor base.” the department said.
Political parties welcomed the bailout talks between Ethiopian Airlines and SAA, but called for the terms and conditions of the deal to be honest.
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 deputy Ghaleb Cachalia said that regardless of who is in talks with SAA, the key issue was that the content of the discussions, including the terms of the agreement, had to be disclosed by SAA, the business rescue professionals, the Department of Public enterprises. and Minister Pravin Gordhan.
“This needs to be made public so that it is known on what basis they intend to get involved and then we can evaluate it. We are interested in seeing what base that is, because the base will determine everything, ”said Cachalia.
He added that SAA’s status was clear for all to see as being bankrupt, poorly managed and in debt and that getting another continental airline or anyone else to come in and fill the gap, even privately, as competition, was welcome. . .
“Many national operators cooperate with other national operators, but these terms must be transparent so that we know what we are talking about,” said Cachalia.
IFP MP Narend Singh said this was in line with his view that the country’s state-owned companies should move towards semi-privatization and commercialization.
“If Ethiopian Airlines wants to join, then it’s welcome… they’ve had a very good track record and have put a fantastic turn on their airline; We just hope that everything necessary has been done and with due diligence, ”said Singh.
Ahmed Munzoor Shaik Emam, an NFP MP, said Ethiopian Airlines was a very successful airline, truly state-owned, but without state interference, unlike SAA, where politicians wanted to interfere in the processes.
UDM leader Bantu Holomisa said: “The truth of the matter is that SAA has been in trouble for some time and has a strategic partnership… there is nothing wrong with that. So we wish them good luck, ”he said.
Political Bureau
[ad_2]
