Pretoria discusses airline merger
Pretoria is beginning consultations over the merger of South African Express and South African Airways, its two loss making entities.
Minister of Finance Pravin Gordhan said merging the two would allow them to operate under a strengthened board.
"It seems clear, furthermore, that we do not need to be invested in four airline businesses. Minister of Public Enterprises Brown and I have agreed to explore the possible merger of SAA and SA Express with a view to engaging with a potential minority equity partner, and to create a bigger and more operationally efficient airline,” said Gordhan.
Both airlines have required state-backed bailouts, resulting in SA Express securing a ZAR1.1 billion (USD 62.3 million) guarantee while SAA obtained ZAR6.488 billion (USD 404.2 million).
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