South African Airways Sale Gets Green Light After Government Covers Historical Liabilities
November 22, 2023: The South African government has covered all of South African Airways (SAA) historical liabilities, paving the way for the sale of a 51% stake in the airline to the Takatso Consortium.
The government’s decision comes after months of negotiations with Takatso, which had insisted that the government take on SAA’s historical debt before it would commit to buying a stake in the airline.
Key Highlights:
- The government has provided SAA with R1 billion in this year’s budget to cover its historical liabilities.
- SAA has also paid its last remaining debts, clearing the way for the sale.
- Takatso is now expected to finalize the purchase of a 51% stake in SAA in the coming weeks.
- The sale of SAA is a significant victory for the South African government, which has been trying to privatize the airline for several years. The government hopes the sale will help revitalize SAA and make it profitable again.
What’s Next?
With the historical liabilities now covered, Takatso is expected to finalize the purchase of a 51% stake in SAA in the coming weeks. The consortium will also likely inject R3 billion into the airline to help it restructure.
The sale of SAA is a significant step in the South African government’s efforts to reform the country’s state-owned enterprises. The government hopes the deal will encourage other private-sector investors to invest in South Africa.
Public Reaction
The news of SAA’s sale has been met with mixed reactions from the public. Some people are happy that the government is finally removing a loss-making airline, while others are concerned about the potential loss of jobs.
Only time will tell whether the sale of SAA will be a success. However, the government is confident that the airline will be able to profit under private ownership.
