The Department of Public Enterprises says it has received more unsolicited interest from private sector funders, private equity investors and partners for South African Airways (SAA).
The department says there has been more than 10 unsolicited declarations of interest for SAA and its subsidiaries – including Air Chefs, South African Airways Technical and Mango Airlines.
Public Enterprises says it has welcomed the attraction of a mix of local and international investor groups for the airline.
The department says it is busy assessing interests from the several unsolicited local and international Strategic Equity Partners (SEPs) for SAA. This as part of the implementation of the Business Rescue Plan, which was published at the end of June 2020.
Government says the investments will provide much-needed technical, operational expertise and financial support for the new SAA carrier.
The department further adds that such partnerships will also improve scale and scope and ensure continuity of value creation to the South African economy and long-term sustainability of the aviation industry.
The national airline has been grappling with financial challenges for several years and received numerous bailouts from government.
SAA employees will also face retrenchments, with 2 700 workers earmarked for Voluntary Severance Packages at a cost of R2 billion. The airline has around 4 600 employees.
The government is yet to raise the money needed to fund the Voluntary Severance Packages and the entire Business Rescue Plan, which is set to cost around R10 billion.
The South African government has received more unsolicited interests from private sector funders, private equity investors and partners for a future restructured South African Airways #SAA and its subsidiaries https://t.co/29rcylQ8lg @DPE_ZA pic.twitter.com/GhXMgGJqTk
— @SAgovnews (@SAgovnews) August 24, 2020
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