AFTER three years of negotiations, the anticipated deal for the South African government to sell a majority stake in South African Airways (SAA) to the Takatso Consortium has fallen through, announced Public Enterprises Minister Pravin Gordhan on Wednesday.
Initiated in 2021 to curb recurring bailouts, the planned transaction aimed to transfer a controlling interest in SAA to the Takatso Consortium. However, Minister Gordhan revealed that both parties mutually agreed that there was no clear path forward following a recent business and asset valuation.
Minister Gordhan said: ‘There is no going back to the past,’ underlining the government’s resolve to end the era of repeated bailouts. He stressed SAA’s imperative to operate independently, without relying on government support, and confirmed that the airline would revert to full state ownership.
‘We must run our operations as efficiently as we can,’ Minister Gordhan reiterated, signalling a departure from the previously envisioned privatisation strategy.
Facing financial strain exacerbated by the Covid-19 pandemic, SAA will explore new funding avenues based on its assets in collaboration with financial institutions, the Minister announced.
‘SAA must stand on its own feet,’ Gordhan emphasised, reflecting the government’s commitment to ensuring the airline’s financial sustainability.
Last year, a competition watchdog approved Takatso’s majority stake acquisition in SAA, contingent on the consortium’s minority shareholders exiting.
Minister Gordhan reassured SAA staff that their jobs were secure, stating, ‘We will make sure that employees will continue to have jobs.’ He stressed the importance of stabilising the airline’s operations and ensuring its long-term viability.
Officials are scheduled to engage with SAA employees on Friday to provide further clarity on the situation and chart the way forward for the embattled airline.