Ethiopian will weigh stake in South Africa’s debt-ridden airline

Ethiopian Airlines Group would consider buying a stake in South African Airways -- should South Africa decide to sell equity in the struggling state carrier. SAA hasn’t made a profit since 2011 and last week delayed the release of annual earnings due to its precarious financial state. While the ruling African National Congress has frequently said that it would consider selling equity in the airline, there’s been no visible strategy for such a plan, said Tewolde Gebre Mariam, the chief executive officer of Ethiopian, Africa’s biggest and only consistently profitable airline. “We are interested in supporting South African Airways,” he said. If South Africa asked Ethiopian to buy a stake, “we would consider it,” Tewolde said. Ethiopian and SAA are already partners in the Star Alliance. The group had discussions with SAA’s former CEO Vuyani Jarana before his resignation in May, Tewolde said. A deal may involve help with SAA’s chronic debt problem, with banks withholding further loans until the airline can present a repayment plan for 9.2b rand ($611m) of borrowings. SAA hasn’t yet appointed a permanent replacement for Jarana. Ethiopian is Africa’s biggest aviation success story, with main rivals SAA and Kenya Airways Plc struggling with losses and relying on government support. <br/>