South African Airways will meet a group of domestic lenders Tuesday to negotiate the refinancing of about ZAR6b (US$423m) in outstanding loans, according to its new CE. The banks have in principle agreed to extend the loan terms, Vuyani Jarana, who took the helm at the loss-making airline Nov 1, said Monday. The group is led by Nedbank Group Ltd. and includes FirstRand Ltd., Standard Bank Group Ltd., Barclays Africa Group Ltd. and Investec Plc. “We are meeting the banks to discuss the rollover of the loans that have expired and to extend the expiry dates,” Jarana said. “That will give us the going-concern status that will enable us to renegotiate longer-term contracts.” The govt has transferred more than ZAR5b to the airline this year to avoid it defaulting on debt owed to Citigroup and Standard Chartered. <br/>
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South African Airways will revive a plan to seek an equity partner that’s able to provide cash and operational savings to help turn around the airline, according to its new CE. A strategic investor would ideally come from within the aviation industry, CE Vuyani Jarana said Monday. That will enable unprofitable SAA to share costs, improve customer service and gain a capital injection, he said. “You don’t just want a pure investor such as private equity,” said Jarana. “With a strong equity partner that has operations elsewhere, you are able to leverage from each other’s capabilities.” A successful search for a new investor would solve the most pressing challenge facing Jarana -- that of putting SAA on a sure financial footing without need of a further govt bailout. <br/>
ANA Holdings has dropped a plan to form a joint venture in Myanmar, the company said Monday, after its application for an AOC was rejected by the authorities in the Southeast Asian country. ANA established the Asian Blue joint venture last year with local investor Golden Sky World, owned by property-to-banking conglomerate Shwe Than Lwin. ANA had agreed to take a 49% stake in the airline, which would have focused on international routes, in anticipation of growing demand as Myanmar opens up following decades of military rule. Asian Blue was ANA's second attempt at investing in Myanmar. In 2014 it scrapped a plan to buy a 49% stake in Asian Wings Airways after growing competition made the investment too risky. <br/>