South Africa’s state airline, South African Airways (SAA), is set to be restructured into a new airline, which will still be the country’s flag airline.
The new airline will involve private and public sector investors, thus allowing it to remain profitable through vital airlift capacity and trade connections.
According to the Department of Public Enterprises (DPE), ‘all parties have already signed a leadership compact, thus committing to a new approach at SAA that includes a “performance-based culture change for all leadership, management, and employees as they transition to a new airline.
The agreed intention is to produce an airline that is a catalyst for investment, job creation in key sectors, and economic growth throughout all regions of the country. And to do so by designing an airline that will be funded through a variety of options such as strategic equity partners, funders, and the sale of non-core assets and the parties are still of the view that the state must continue to play a role.
Statement from the Department of Public Enterprises
However, it did not guarantee that no jobs would be affected during the transition process.
There are hints that once the transition is complete, SAA employees will have an opportunity to own equity in the new airline.
This new development comes just weeks after the government denied the airline any further bailout, arguing that resources are now being directed toward combating COVID-19 and its impact on citizens and businesses.
See Also:
