South Africa hires Bain, Abacus to advise on government airlines

South Africa has hired Bain & Co. to advise on the strategy and corporate structure of the country’s three loss-making state-run carriers to improve the benefit to the state from owning the airlines. Bain, based in Boston, was awarded the contract as part of a joint venture with a South African company, Abacus Advisory, according to a posting on the National Treasury’s website. The contract was awarded in October for a three-month period, a spokesman for the Treasury said Monday. South Africa’s government is seeking advice on the corporate structure of South African Airways and South African Express, which could lead to the sale of a minority stake in the airlines and the disposal of assets that aren’t central to their businesses, according to a separate invitation-to-bid document. The state is also seeking advice on how to improve their financial performances, reduce risk and develop a “well-coordinated strategy,” the document shows. Both SAA and SA Express are surviving on state debt guarantees at a time when the government is trying to rein in spending and raise revenue amid slowing economic growth. <br/>