The revamped and now profitable SAA could be attractive to a potential suitor, aviation experts said yesterday.
They said Qatar Airways had recently said it would make an imminent announcement on a southern African partner, but the jury was out on who it would be.
Speculation on the future of the airline spiked on the weekend after Deputy President Paul Mashatile said that selling a majority stake of SAA to those in the private sector with the capital and expertise to turn the embattled state-owned entity around may be the best way forward.
Although the recent Takatso deal did not take off, Mashatile said that while the airline’s performance seemed to be improving, the original plan to bring the private sector on board to make the airline profitable was the correct move and should be explored again.
“I would not mind resuscitating SAA as a state-owned company, but my approach would be to partner with the private sector because I don’t think the government will have all the money (to run it),” Mashatile told the media, arguing that the airline had been bailed out to about R9 billion to date.
Uncertainty as to the airline’s future has also been fed from the conflicting statements by government officials.
An aviation consultant said: “From recent reports we have learnt that SAA is operating at a profit. That is a definite positive that will be considered by investors. As long as the sale process is handled professionally, I think there is a chance that there may be investor appetite.”
However, he said the Qatar speculation was more realistic towards FlySafair than the national carrier.
Aviation expert Guy Leitch said a partnership with any of the high-flying operators speculated about, including Ethiopian Airlines, Angola Airlines and Qatar Airways were feasible if government had decided on what it wanted for the airline and would not interfere with operations of a new partner.
He said, though, the decision was still in the government’s court as potential local investors for SAA were sparse while potential international investors could have concerns over the foreign ownership threshold.
The National Union of Metalworkers of South Africa (Numsa) rejected Mashatile’s position on disposing SAA, citing its importance as a flag carrier and economic stimulant as vital.
Spokesperson Phakamile Hlubi-Majola said that prior to business rescue, SAA contributed 24 000 jobs along the value chain, besides creating 10 000 direct jobs.
Its subsidiary Mango forced private players to offer affordable competitive rates on domestic flights, thus boosting and supporting SMMEs, and SAA’s subsidiary was a global leader in aircraft maintenance services and international airlines used to depend on it for aircraft maintenance services.
"Since its (SAA) collapse we have seen the cost of domestic flights skyrocket,“ Hlubi-Majola said.
In a statement issued on behalf of the South African Federation of Trade Unions by general secretary Zwelinzima Vavi, the union condemned comments made by Mashatile “calling for the privatisation of SAA”.
Underwritten by the state, SAA should be an affordable Airbus and help working-class people afford air travel, it said.
“We reject Deputy President Mashatile’s call to auction the SAA, especially after a botched sale went south with Takatso Consortium,” it added.
Aviation analyst Phuthego Mojapele said there were doubts Mashatile was stating a Cabinet position and that the government would be engaging potential suitors from a position of desperation.
"SAA is stable and is doing well enough and what the Deputy President says goes against what has been stated by the executive and the board," Mojapele said.
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