Cabinet has directed the Department of Public (DPE) to appoint a strategic equity partner for floundering South African Airways (SAA), as the business rescue process at the airline gets underway.
SAA was allocated a R10.5 billion bailout by the government last month, which is also said to be looking for a buyer for its stake in SAA, in order to raise $400 million. The funds would be put towards recapitalising the SAA after the business rescue concludes.
The government has been on the hunt for a partner for the airline as part of its attempt to resuscitate it. Ethiopian Airlines Group has stepped forward with an offer to provide planes, maintenances services and pilots to SAA but has made it clear that it will not be assisting it in dealing with its legacy issues, including debt repayments or workforce reduction.
Cabinet also requested the DPE to finalise its appointment of the interim board for the airline, which it has been working on since July, its requests came this week, following a briefing on the progress of business rescue plan.